TNAG-0867-FCO40-1077-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 70

CONFIDENTIAL

HKE 184

REN

PA

66

Mr Wilhameon 6

823/5

Jar

Mr Morland

MAED

1/20

2 MAY 1979

CHINA: AIR SERVICES AGREEMENT

INDEX

No J2.5

1. Thank you for your minute of 26 April recording the main

points of Mr Cradock's talks with Mr Rogers.

We have

discussed with HKGD the points raised by Mr Rogers about Hong

Kong's constitutional position in relation to its inclusion in "regional" arrangements, and the Hong Kong Government's technical capacity to negotiate independently with the Chinese

authorities, and are agreed on the following line.

•

It

2. In our view Mr Rogers' first point is not insuperable.

is the case that the constitutional position of Hong Kong is a

point of potential friction between ourselves and the Chinese

authorities, but in practice we both respect each other's views,

and we both therefore try to avoid defining our respective

positions too closely.

Certainly it is not an issue which

interferes at all with the smooth transaction of day to day business.

Rather the reverse: both sides are looking for increased links

between Hong Kong and Guangdong, eg water supply, tourism, commerce, railway communication, and perhaps ports. Against this background,

while we obviously could not accept arrangements in which Hong Kong

was explicitly defined as a region of China, we should have no objection in principle to Hong Kong being included in "regional" arrangements, provided that the definition was not made explicit or the implication deliberately drawn. Certainly with the

Chinese in a flexible and constructive mood, we do not wish to see

Britain cast as the inflexible party.

3.

But we

On the second point, neither we nor HKGD are able to give an authoritative view on Hong Kong's ability to negotiate air service arrangements with the Chinese.

see no reason in principle

why they should be judged technically deficient in this respect in view of their general experience of aviation issues and unrivalled experience in dealing with the Chinese on a whole range

of issues. They have been working out short term arrangements

/successfully

CONFIDENTIAL