TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 290

DE 18 - 77

CONFIDENTIAL

Reference

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23. A statement issued privately by HMG to the Chinese on CAL's status, together with a mutually agreed reorganisation of CAL ground services at Hong Kong, might be tolerated by Taiwan. Such a course, however, would demand a concession from the Chinese who have insisted on a public statement from HMG. It is just possible, if the Chinese are sufficiently anxious to conclude an air services agreement, that they might yield on this point; but this might not emerge until negotiations got under way.

28 September, 1978.

S. Pares

S Pares

Far Eastern Section Research Department