TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 41

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Perhaps

Inclusive Tour Charter (ITC) Flights

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9.

The CAAC side also said they had it in mind to operate ITC flights to Kweilin, Hangchow, etc. but, because of the lack of hotel accommodation, these could not start until Spring 1979 at the earliest. Chang said that they would have no difficulty in complying with the ITC conditions set out in the Hong Kong AIP. I said that I could see no problems standing in the way of such flights operating.

Reciprocity

10.

Choosing the time carefully, I said that co-operation was a two-way affair and that DCA's attitude towards CAAC applications for ABC flights would be bound to be coloured by the CAAC attitude on reciprocity. I therefore asked the CAAC side what their attitude would be on this matter. This was a very difficult question for Li to answer and it proved necessary to press the point to get any answer at all. His starting point was the quote special status of Hong Kong unquote which made it especially difficult to comment. He asked what Hong Kong airlines might want to operate and what they had in mind but made it clear from the outset that CPA was a non-starter because of their services to quote Formosa unquote. I replied that no application had been received but, in the light of the continued operation of CAAC flights, an airline could quickly be formed to operate alongside CAAC. Without prompting, Chang said that if I had Hong Kong Airways in mind, this should be dismissed because it was owned by quote Butterfield and Swire unquote.

11.

I quickly side-stepped the specifics of reciprocity and sought, at least, agreement in principle from the Chinese side. Li spoke of the good relations between the PRC and UK in general (the recent visit of the Foreign Minister to London was mentioned) and the excellent relations between the authorities in Hong Kong and Kwantung. He once again underlined the first class co-operation by the authorities in Hong Kong which largely contributed to the success of the Trade Fair Charter flights. He went on to say that, in the light of the continued successful operation of CAAC charter flights to/from Hong Kong, the question of reciprocity could be locked at again at some time in the future. He was at pains to point out that this was his personal view

hatta should only. During the whole of the conversation on this topic, both Chang

have done so.

and Li mentioned only Hong Kong airlines and not UK or British.

Press Release

12.

I said that there was a good deal of press interest in Hong Kong on the subject of CAAC charter flights and that questions would be bound to be asked on my return to Hong Kong. Li was reluctant to agree to any statement, however brief and I said that this would not do in Hong Kong. I should feel obliged to say something and should much prefer that what was said was an agreed statement.

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