TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 288

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CONFIDENTIAL

Reference.

I

Mr Allen, FED

SINO-JAPANESE AIR SERVICES AGREEMENT, 1974.

We spoke. Please refer to Peking Telegram no. 501 of 11 August, to Hong Kong Telegram no. 995 of 16 August and to FCO Telegrams no. 502 and 512 of 6 and 9 September to Peking on the subject of a China-UK Air Services Agreement.

Summary of events surrounding the conclusion of the Sino-Japanese Air Services Agreement

2. The Air Services Agreement (ASA) netween China and Japan signed in Peking on 20 April, 1974, by the Chinese Foreign Minister, Chi Pleng-fei, and the Japanese Ambassador to China, Heishiro Agawa, was the outcome of negotiations initiated in November 1972. These were protracted and, for the Japanese, involved discussions both with the Chinese Government and with the Nationalist Chinese authorities. A further problem for the Japanese Government, headed throughout the period of negotiations by Mr Tanaka, was the pro-Taiwan stand of the right-wing section of his ruling Liberal Democratic Party. Japanese negotiating teams made three visits to China (March and April-May 1973, and March- April 1974) while the Japanese Foreign Minister, Mr Ohira, went in January 1974 for general talks which included discussion of the ASA. His visit appeared to break the stalemate into which negotiations had sunk during 1973.

3. The signing of the ASA drew a swift reaction from the Nationalist Chinese government which ordered Japan Air Lines (JAL) to terminate its services to Taiwan from 21 April, 1974, and withdrew its own services by China Air Lines, (CAL) to Japan. Air links between Taiwan and Japan were, however, resumed in August/September 1975 following the conclusion of 9 July, 1975, of a new non-governmental civil aviation agreement. The resumption of air services has so far brought no objections from the Chinese Government.

Political issues facing the Japanese

(a) with China

:

4. The impetus for negotiations over the ASA came from Article 9 of the Joint Statement of 29 September, 1972, on the normalisation of relations between China and Japan. This Article called for negotiations aimed at the conclusion of various agreements including aviation, and it would appear that the Chinese themselves suggested that an air services agreement should be dealt with first. Whether or not the Chinese made their choice because of the complicating factor of Japan's air links with Taiwan, they almost certainly viewed the ASA as a test of Japan's sincerity in its dealing with China. Articles 2 and 3 of the Joint Statement conveyed Japan's recognition of the Government of the PRC as the sole legal government of China and its understanding of the respect

of/. for the Chinese Government's reaffirmation that Taiwan was an inalienable part of the territory of the PRC.