TNAG-0867-FCO40-1077-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 11

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EKING 100955Z MAY 79

DESKBY 1012002 MAY

TO IMMEDIATE FCO

TELEGRAM NUMBER 425 OF 19 MAY 79

CONFIDENTIAL

INFO IMMEDIATE HONG KONG (GOVERNOR AND BCARFE)

AND ROUTINE HONG KONG GOVT OFFICE LONDON.

MIPT: UK/PRC AIR SERVICES NEGOTIATIONS

HKK194/2

No DOT Dios PAK

Seela's

SO FAR AS AMENDMENTS CONNECTED WITH ICAO AND THE TRUNK ROUTE ARE CONCERNED, THE DIFFICULTY WOULD APPEAR TO BE ONE OF TIME TO CONSIDER, IF INDEED THERE IS ANY DIFFICULTY AT ALL. THE REAL PROBLEM IS, AS WE EXPECTED, OUR SUGGESTION THAT REGIONAL FLIGHTS BETWEEN HONG KONG AND CHINA BE DEALT WITH IN THE FRAMEWORK OF THE NEGOTIATIONS, AND PERHAPS INCLUDED IN THE AGREEMENT. IT WAS CLEAR THAT LI WAS EXPECTING US TO RAISE THIS, AND REACTED IMMEDIATELY AND AUTHORITATIVELY, I DO NOT RULE OUT SOME DISCUSSION OF MATTERS CONNECTED WITH THE REGIONAL ROUTES (EG THE ABILITY OF BA TO PARTICIPATE IN A JOINT COMPANY OFFERING SERVICES RECIPROCAL TO THE CHINESE). BUT IF WE INSIST ON INCLUDING THE REGIONAL ROUYOS QUESTION IN THE NEGOTIATIONS OF THE ASA, WE SHALL WAIT UNTIL THE GREEK KALENDS FOR NEGOTIATION. THE SPEAKING NOTE WAS HOWEVER FLEXIBLE ENOUGH FOR US TO GO BACK TO THE CHINESE AND SAY THAT WHILE WE WISH IN THE COURSE OF TALKS TO ESTABLISH THE FRAMEWORK WITHIN WHICH REGIONAL AS WELL AS INTERNATIONAL SERVICES ARE NECOTIATED, WE ARE CONTENT TO RESTRICT THE ASA ITSELF TO THE LATTER. GRATEFUL FOR INSTRUCTIONS TO ENABLE US TO SAY THIS.

2.

SO FAR AS THE UNBLINDING OF THE HONG KONG/PEKING SECTOR IS CONCERNED, LI HINTED THAT SOME CHANGE MIGHT BE POSSIBLE. IT WAS NOTABLE THAT, IN TALKING OF REGIONAL ROUTES, LI DID NOT MENTION HONG KONG/PEKING.

CRADOCK

FILES

MPED.

FED

ithYGD

LEGAL ADVISERS.

M2 CORTAZZI Miss BrocON. MIMURRAY

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