TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 286

CONFIDENTIAL

Reference.

CODE 18-77

S$ 10/76

opposition to any arrangement whereby CAL would continue to serve Tokyo and Osaka, the two points to which China Wished to operate flights; yet these points generated most of CAL's traffic, and Japan feared retaliatory action from Taiwan if this traffic were cut. By way of solution, the Japanese proposed that the Chinese should be allowed rights at Narita, the new international airport for Tokyo, when it opened, with CAL continuing its flights to Haneda, Tokyo's then international airport, and Osaka.

Chinese pressure over Taiwan

10. During the summer of 1973, the Chinese suggested that Japan should put pressure on Taiwan to remove the insignia from its aircraft. This proposal, however, was made by Chou En-lai through the medium of an interview with a visiting Japanese and was subsequently given Japanese press publicity, thereby enhancing Taiwanese resistance to the idea. The Chinese aim was doubtless partly to strengthen the hand of those favouring the ASA, but also to put Japanese sincerity over Sino-Japanese relations to the test. At the same time, however, it became apparent that Chinese objections were not so much against CAL aircraft flying into the same airports as CAAC aeroplanes, but that aircraft with rival claims to sovereignty should be seen parked side by side.

11. In the face of Taiwanese resistance to the Chinese proposal Japan made it clear to China in the course of the autumn, that it would not consider putting pressure on Taiwan to change CAL's name or remove the insignia from its aircraft. However, the Japanese Ambassador laid informal proposals before the Chinese Ministry of Foreign Affairs, on a possible distribution of airports between CAAC and CAL, and on Japanese readiness to regard CAL marking and flags as a company or regional matter.

The Six Points

12. The then Japanese Foreign Minister, Mr Ohira, visited China from 3-6. January, 1974, for general consultations, including discussion of the ASA. Shortly after his return, the draft of a six-point government proposal was handed on 17 January to four LDP committees for their consideration. It is not clear when or where this draft was prepared, but it was commonly assumed at the time that it had the tacit support of the Chinese for whom it represented the maximum concessions they were prepared to grant. It would seem likely that the outline of such a draft might have been put to the Chinese during Ohira's visit or drawn up immediately after on the basis of points made in the Sino-Japanese discussions.

13. The six points are as follows:

i)

ii)

The conclusion of a Japan-China air services agreement would be accompanied by the maintenance of the Japan-Taiwan air link, including rights beyond, through non-governmental arrangements. JAL would not fly the Japan/Taiwan route.

/iii

:

* A private version of the sixpoints was agreed with the Chinese.

This committed the Tapanise govemment to effects to secure a change

CONFIDENTIAL in CAL'S name and emblem and to

give preaty to Caar ahaalt aveccal