TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 93

GRS 220

CONFIDENTIAL

DES BY 271200Z

FM HONG KONG 271100Z NOV 78

TO IMMEDIATE F C O

CONFIDENTIAL

TELEGRAM NUMBER 1362 OF 27 NOVEMBER

INFO IMMEDIATE PEKING

INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON

(664

YOUR TELNO 740 TO PEKING: AIR SERVICES.

RA

AKK 184/1

672

RECEIVED IN REGISTRY NO. 51

2 8 NOV 1978

DESK Orf.1

INDEX

RY

Action Taken

WE AGREE THAT IT IS WORTH TRYING THE FORMULAE IN YOUR PARA 2. IT IS NOT POSSIBLE OF COURSE TO PREDICT HOW TAIWAN WOULD REACT. WE WOULD SUPPORT CPA'S RIGHT TO SEEK COMPENSATION IF THEIR ROUTES TO AND OVER TAIWAN WERE DISRUPTED OR LOST AS A RESULT OF AN AGREEMENT TO PROVIDE RIGHTS FOR BA TO PEKING. WE ENVISAGE SUCH

COMPENSATION TAKING THE FORM OF ADDITIONAL ROUTES FOR CPA WITHIN HMG'S IMMEDIATE GIFT, TO ENABLE CPA TO MAINTAIN A VIABLE OPERATION.

2. THE ADDITIONAL POINTS IN YOUR PARA 4 CAN BEST BE COVERED IF AND WHEN WE GET INTO THE FURTHER NEGOTIATIONS YOU ENVISAGE. AT THIS STAGE WE ONLY WISH TO NOTE THREE POINTS :

(A) IF OVERFLYING RIGHTS OF CHINA ARE TO BE ALLOWED, WE HOPE THEY WOULD COVER HONG KONG-REGISTERED AS WELL AS UK-REGISTERED

AIRLINES:

(B) IF FLIGHTS WITH TRAFFIC RIGHTS BETWEEN CHINA AND HONG KONG

ARE TO BE INCLUDED IN AN ASA, WE THINK THAT THE WAY MUST BE LEFT OPEN FOR A LOCAL AIRLINE TO HAVE PRIORITY IN THE BRITISH SHARE OF

SUCH SERVICES:

(C) WE MAY WELL FIND THAT THE BEST WAY FORWARD ON HONG KONG FLIGHTS

IS TO HAVE AN AGREEMENT SEPARATE FROM THE ASA.

MACLEHOSE

FILES

FED

HK & GD

MAED

PS/LORD GORONWY ROBERTS

MR MURRAY

MR CORTAZZI

COPIES TO:

MR DARWIN, LEGAL ADVISER

HONG KONG GOVT OFFICE

DOT/CAIR DIV

CONFIDENTIAL