TNAG-0867-FCO40-1077-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 49

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30 APR 1979

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Mr Masefield

Far Eastern Department

--CONFIDENTIAL

CHINA AIR SERVICES AGREEMENT

Submission

96

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discuss this wilt Hr.ed. with Peking in flexible wood

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I accompanied HM Ambassador Peking to call on Mr Rogers this morning. Mr Bryant was present.

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2. Mr Rogers and Mr Cradock agreed that there were good prospects for reaching agreement with the Chinese next month, largely on the basis of the agreement drafted in 1973, now that the political difficulty relating to Taiwan, which had been the indirect cause of abandoning the attempt in 1973, had been settled. Mr Rogers expected talks might take a fortnight. that Mr Draper (BA) had gone beyond his brief in talking to the He apologised Chinese (Peking telegram No 384 of 23 April); but Chinese, response had fortunately been helpful, particularly on over-flying rights over southern China on the existing route to Hong Kong and on the partial unblinding of the Hong Kong/Peking sector on the British Airways international route.

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Mr Rogers was however particularly worried about the Chinese suggestion that regional flights from Hong Kong to other points in China should be separately negotiated between Hong Kong and regional Chinese authorities. He suggested that the FCO would see objection on constitutional grounds to equating Hong Kong to a Chinese regional authority about this-- but made, it clear that his (Mr Rogers) main fear was

Mr Cradock was not particularly worried that if Hong Kong were given freedom to negotiate such an agree- ment on their own they would use this to press for general autonomy in civil aviation negotiations and that it would be hard to stop this once a precedent had been set. Mr Cradock suggested that

the main agreement could make provisions for subordinate arrange- ments to be worked out for regional services. Mr Rogers admitted

that the service between Hong Kong and Taiwan had been fixed up

by CPA, but still stuck to his view that the Hong Kong Government, with or without CPA's assistance, would not have the technical capacity to negotiate services with Chinese regional authorities.

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Mr Rogers has always been concerned about the risk of Hong Kong getting out of line and this may turn out to be the most difficult aspect of the forthcoming negotiations. If FED and HKD

considered that the constitutional point made by Mr Rogers is groundless, or could easily be got round, it might be worth

CONFIDENTIAL

/writing