TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 327

CONFIDENT TAL

4. WE ARE UNCERTAIN WHAT IS MEANT BY THE STATEMENT THAT AN

EXPANSION OF NON-SCHEDULED FLIGHTS BETWEEN CHINA AND HONG KONG

MIGHT BE MORE PROFITABLE THAN A SCHEDULED SERVICE, NON-SCHEDULED

FLIGHTS BY CAAC ARE DEVELOPING SLOWLY AND WE ASSUME THEY FIND

THEM PROFITABLE. THEY ARE, HOWEVER, VERY LIMITED WITH ONLY NINE

FLIGHTS (FIVE CARGO AND TWO PASSENGER FLIGHTS FROM CHINA AND TWO CARGO FLIGHTS TO CHINA) MADE SO FAR THIS YEAR. NO APPLICATIONS

HAVE SO FAR BEEN RECEIVED BY DCA FOR THE PROPOSED CAAC AUTUMN

TRADE FAIR FLIGHTS. HOWEVER A CAAC TEAM LED BY LI SHU-FAN WAS DUE

TO LEAVE PEKING TODAY FOR TALKS WITH JARDINES (PEKING TELNO, IMMA 279) TO US) AND LOCAL LEFT-WING PRESS STORIES HAVE MENTIONED PLANS

FOR TWO RETURN SERVICES PER DAY USING TRIDENTS.

MACLEHOSE

FILES FED

HK & GD

MAED

MR MURRAY

MISS BROWN

བ་”

CONFIDENTIAL