TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 130

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RECEIVED IN RECASTY NO 51

DESKBY 201530Z (FCO) 2101002~(HONG KONG)

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INDEX

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HONG KONG TELNO 1331 TO YOU: NON-SCHEDULED FLIGHTS CANTON~HONG

KONG

1.

1660

IT IS DIFFICULT TO GIVE ADVICE WITHOUT KNOWING THE RELATIVE - PRIORITY YOU ATTACH TO LOCAL AS OPPOSED TO INTERNATIONAL FLIGHTS,

WHILST ACCEPTING THE LATTER UNDER AN AIR SERVICES AGREEMENT.

THE ARGUMENTS IN PARAGRAPH 3 OF HONG KONG'S TUR REGARDING THE USEFULNESS OF CONTINUING FLIGHTS BETWEEN HONG KONG AND CANTON, I AM A LITTLE CONCERNED ABOUT THE WAY THE CHINESE APPEAR IN FULL CONTROL OF THE DEVELOPMENT OF THESE FLIGHTS.. ALTHOUGH THEY WILL OFFICIALLY DE ADVANCED BOOKING CHARTERS, THE SHORT PERIOD OF NOTICE AND WAITING LIST PROVISION MEAN THAT THEY

IN APPROVING THEM, WILL BE SCHEDULED SERVICES IN ALL BUT NAME. THEREFORE, WE SHALL BE ALLOWING THE CHINESE, AND INITIALLY ONLY THE CHINESE, TIHOPERATE THE FLIGHTS BETWEEN BRITISH AND CHINESE AIRSPACE THAT THEY FIND MOST PROFITABLE WITHOUT HAVING GAINED ANY GROUND ON THE AIR SERVICES AGREEMENT.

2. IF WE STILL CONSIDER THAT WE SHOULD AIM ULTIMATELY FOR AN AIR SERVICES AGREEMENT, AND IF WE CANNOT NOW REFUSE THESE FLIGHTS, WHICH MIGHT BE TOC DAMAGING TO HONG KONG/CHINA 2000WILL, I HOPE THAT WE CAN AT LEAST MAKE IT CLEAR TO THE CHINESE NOW THAT ANY EXTENSION OF THE INITIAL THREE MONTH ACREEMENT, OR TO ROUTES BETWEEN HONG KONG AND OTHER POINTS IN CHINA, SHOULD BE TIED IN WITH THE CONCLUSION OF THE AIR SERVICES AGREEMENT. AFTER THREE MONTHS WE SHOULD THEN BE ABLE TO POINT OUT THAT THE CHINESE HAVE EFFECTIVELY COUNTERED THEIR OWN ARGUMENTS ABOUT CAAC USING KAI TAK ON A REGULAR BASIS TOGETHER WITH CAL IMPLYING RECOGNITION OF A TWO CHINAS**

SITUATION.

፡

ENTIAL

13. IF ON