TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 141

CONFIDENTIAL

HEK 184/1A

RELLES

бит

CRS 410

CONFIDENTIAL

FM PEKINGPQRPWWTZ NOV 78

TO PRIORITY FCO

TELNO 803 OF 14 NOV

INDEX

PA

INFO HONG KONG (GOVERNOR AND BCARFE), BANGKOK.

YOUR TELNOS 674 TO PEKİNG AND @?Ø TO BANGKOK# THAI/PRC AIR SERVICES

1. SULLIVAN SPOKE WITH SAWANIT OF THE THAI EMBASSY TODAY, WHO EXAPAINED THAT ALTHRJGH HE WAS NOT AWARE OF WHAT MIGHT

HAVE BEEN DISCUSSED IN BANGKOK DURING TENG'S VISIT LAST WEEK,

THERE HAD HITHERTO BEEN NO DISCUSSIONS BETWEEN THAI AND PRC

REPRESENTATIVES ABOUT OPENING AIR SERVICES BETWEEN THE TWO COUNTJFIES. THE CHINESE HAD APPROACHED THEM SOME WEEKS BEFORE TENG'S VISIT, REQUESTING THE VISIT TO BANGKOK OF A CAAC TEAM TO DISCUSS OVERFLYING RIGHTS TO PHNOM PENH. ASKED WHETHER OXEY WANTED AT THE SAME TIME TO DISUSS THAI/PRC SERVICES, THE CHINESE HAD ANSWERED THAT THERE WAS NO HURRY'

2. THIS REPLY HAD APPARENTLY PLEASED THAI INTERNATIONAL, WHO SAW TXAPE! SERVICES AS BEING MUCH MORE LUCRATIVE RLAN A PEKING RUN, AND HAD SERIOUS DOUBTS ABOUT THE POSSIBILITY OF RUNNING BOTH. SAWANIT HAJNO IDEA WHAT CONDITIONS PEKING MIGHT IMPOSE

ONCE NEGOTIATIONS STARTED, BUT THOUGHT THESE MIGHT NOT BE TOO SEVERE GIVEN THEIR NEED FOR THAI COOPERATION OVER FLIGHTS

TO KAMPUCHEA. CAL HAD LET THAI INTERNATIONAL KNOW OF CERTAIN CONDITIONS HE WAS NOT SURE WHAT THESE WERE, BUVGSAW NO REASON TO DOUBT THOSE QUOTED BY PRASIT (BANGKOK TELNO 437). HE

SAID THAT SETTING UP A SEPARATE AIRLINE WOULD MEET WITH HEAVY OPPOSITION FOLLOWING THE SCANDAL SURROUNDING THE LIQUIDATION

OF AIR SIAM TWO YEARS AGO.

3.

SAWANIT SUSPECTED THAT THE DEPUTY MINISTER OF COMMUNICATION

HIMSELF WAS PROBABLY THE SOURCE OF SPECULATIONS ABOUT THE

IMMINENCE OF A THAI/PRC A.S.A. AND THE OPENING OF SERVICES.

CONFIDENTIAL

| PRASIT