CHINA ALONGSIDE CAAC.
(VI) CAAC HAVE NO PLANS TO OPEN A SERVICE TO THE UK UNTIL
THE SPRING OF 1993 AT THE EARLIEST, WHEN THEY HAVE ACQUIRED
THEIR FIRST 747. AT FIRST THEY RESISTED THE IDEA THAT
BA OUGHT TO OPEN UP EARLIER (NOVEMBER 1 IS THE BA TARGET DATE), ON THE GROUNDS THAT THE HOTEL ACCOMODATION IN PEKING IS INADEQUATE TO COPE WITH AN EXTRA PLANE LOAD PER
WEEK. THIS WAS TO A CERTAIN EXTENT OVERCOME BY BA POINTING CUT THAT THE NET INCREASE IN VISITORS TO PEKING RECENTLY FROM THE INTRODUCTION OF THEIR FLIGHT WOULD BE SMALL, THAT THE CONTROL OF THEIR NUMBERS WOULD STILL DE IN CTS HANDS, AND THAT THE EXTENSION OF A BOEING 707 FLIGHT TO PEKING FROM HONG KONG WOULD NEED TO CARRY ONLY 40-50 PASSENGERS TO BE PROFITABLE. DA ALSO OFFERED A POCLING OF SERVICES
WHEREBY CAAC WOULD SHARE PROFITS ON THE INTERNATIONAL
ROUTING EVEN BEFORE THEY BROUGHT THEIR OWN PLANES INTO
SERVICE, ALTHOUGH CAAC DO NOT AT PRESENT OPERATE SUCH
A SCHEME WITH ANY OTHER AIRLINE, THEY EXPRESSED CONSIDERABLE INTEREST, AS ALSO IN A, DA OFFER TO PROVIDE TRAINING FOR CAAC
AIRCREWS IN THE UK.
4. DRAPER AND HIS TEAM WERE DELIGHTED WITH THE OVERFLYING OFFER,
EVEN THOUGH THEY SUSPECT IT MAY BE OPEN TO OTHER AIRLINES OM
APPLICATION. GIVEN THIS AND THE POSSIBILITY OF SOME COMPROMISE
ON THE HONG KONG/PEKING SECTOR OF THE INTERNATIONAL ROUTE AND
RECIPROCITY ON ANY REGIONAL HK/CHINA FLIGHTS, THEY WERE OPTIMISTIC
ABOUT THE OUTCOME OF THE ASA NEGOTIATIONS. DRAPER WAS CONCERNED THAT DOT INSISTENCE THAT HONG KONG FLIGHTS SHOULD BE INCORPORATED IN THE ASA AND THE CHINESE NEED FOR SUCH FLIGHTS USED AS A LEVER TO FULLY UNBLIND THE HONG KONG-PEKING SECTOR WOULD PROBABLY MEET WITH A BLANK REFUSAL. HE WILL BE SPEAKING TO ROGERS IN THIS VEIN, ARGUING THAT IN THE CHINESE CASE TOO HARD A NEGOTIATING STANCE MIGHT BE COUNTER-PRODUCTIVE. THIS IS PROBABLY RIGHT IF BA ESTIX-
ATE THAT HALF A LOAF IS BETTER THAN NONE.
5. THE TEAM HOPED TO CLEAR WITH THE CHINESE ON DEPARTURE A SHORT PRESS RELEASE FROM DRAPER SAYING THAT BA AND CAAC HAD HELD FRIENDLY AND USEFUL DISCUSSIONS WITH A NEW TO ESTABLISHING SERVICES DETWEEN THE UK AND THE PRC AFTER THE SIGNATURE OF AN ASA IN CONNECTION WITH WHICH A NEGOTIATING TEAM WOULD SHORTLY DE VISITING PEKING.
CAAC HAVE NOW SAID THAT THE TEAM LED BY ROGERS WOULD BE POST
WELCOME ON 17 MAY. WE SHALL HAVE ARRANGEMENTS FOR SOMEONE FROM
THE FERAGSY TO BE PRESENT DURING THE TAL ́S.
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