TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 158

CONFIDENTIAL

"MMEDIATE

DESKBY 0801007

CYPHER CAT A

FM FCO 071149Z

CONFIDENTIAL

DESKBY 080100Z.

TO IMMEDIATE PEKING TELNO 600 OF 7 OCTOBER

AND TO HONG KONG.

184

20 IN REGISTRY NC-50

9 OCT 1978

SI NO-JAPANESE AIR SERVICES AGREEMENT(ASA) 1974,

FOL

FOLLOWING IS A SUMMARY OF RESEARCH DEPARTMENT'S MINUTE OF SEPTEMBER 28.4

(85

1. THE ASA WAS SIGNED ON APRIL 20, 1974. THE IMPETUS FOR NEGOTIAT- IONS CAME FROM THE 1972 JOINT STATEMENT ON THE NORMALISATION OF RELATIONS BETWEEN CHINA AND JAPAN, THE CHINESE DO NOT APPEAR TO HAVE BEEN OPPOSED TO THE CONTINUATION OF FLIGHTS BETWEEN JAPAN AND TAIWAN, BUT SOUGHT TO ENSURE THAT THEY LOST ANY INTERNATIONAL STATUS AND ASSUMED A LOCAL IMPORTANCE BESIDE WHAT WAS TO BE THE TRUNK AIR ROUTE BETWEEN CHINA AND JAPAN. CHINESE NEGOTIATING TACTICS APPEAR TO HAVE BEEN TO OUTLINE PROBLEMS IN TERMS OF BROAD PRINCIPLES, THEN AWAIT JAPANESE COMMENTS AND PROPOSALS,

NEGOTIATIONS WITH CHINA.

2. IN THE ABSENCE OF ANY FORMAL ASA BETWEEN JAPAN AND TAIWAN, . CHINA AIR LINES (CAL) AND JAPAN AIR LINES (JAL) WERE IN 1972 OPERATING AS PRIVATE AIR COMPANIES. THE JAPANESE HOPED CHINA WOULD TOLERATE THIS ARRANGEMENT AND ALLOW JAL TO CONTINUE FLIGHTS TO BOTH CHINA AND TAIWAN. THE FIRST TWO ROUNDS OF NEGOTIATIONS (1973) REVEALED CHINESE UNWILLINGNESS TO ALLOW JAL TO DO THIS AND OPPOSITION TO ANY CONTINUATION OF CAL SERVICES TO TOKYO AND OSAKA. THE JAPANESE PROPOSED THAT CIVIL AIR ADMINISTRATION OF CHINA (CAAC) SHOULD BE ALLOWED RIGHTS AT NARITA AIRPORT WHEN IT OPENED, WITH CAL CONTINUING ITS FLIGHTS TO HANEDA AND OSAKA,

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13. THE