GR 355
CONFIDENTIAL
HKK 184/1
RECEIVES 220Y NO.
21
12 JUN 1979
DESK OFFICER INDEX
PA
Action
160
158)
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CONFIDENTIAL
FM HONG KONG 0934857 JUN 79
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELNO.756 OF 9 JUNE,
INFO IMMEDIATE: PEKING,
ROUTINE : HONG KONG GOVT OFFICE LONDON.
па
PFKING TELNO.543 : U.K/PRC AIR SERVICES NEGOTIATIONS.
1. THE OPTIONS AS THEY HAVE SUBSEQUENTLY DEVELOPED ARE SO FAR FROM THE INSTRUCTIONS TO THE DELEGATION AS SET OUT IN YOUR TELNO.317, THAT WE DO NOT SEE HOW THEY CAN FORM THE BASIS FOR AN AGREEMENT. A HEAVILY UNPALANCED AGREEMENT WOULD NOT ONLY BE INEQUITABLE IN AIR SERVICES TERMS BUT MIGHT ALSO BE READ AS HAVING IMPLICATIONS FOR THE STATUS OF HONG KONG. WE WONDER WHETHER THE PROGRESSIVE RETREATS MADE
By
Y LU ARE AN INDICATION, AS FORESHADOWED IN OUR TELNO.89 TO PEKING, THAT
THE CHINESE ARE WORKING DELIBERATELY TOWARDS A BREAK IN THE
NEGOTIATIONS.
2.
THE PROSPECTS OF AN AGREEMENT WHICH IS FAIR AND EQUITABLE
IN AIR SERVICES TERMS SHEM VERY REMOTE EXCEPT FOR OPTION B
(PARA.4(B) OF PEKING TELNO.526) WHICH LU HAS CONFIRMED IS STILL ON THE TABLE (PARA.7 OF PEKING TEL NO.533). WE WOULD BE PREPARED TO SETTLE ON THAT BASIS (OUR TELNO.724). THIS WOULD ACHIEVE THE PRINCIPLE OF RECIPROCITY AND LEAVE FURTHER DEVELOPMENTS
OF REGIONAL SERVICES UNTIL LATER. IT WOULD HOWEVER BE AN
UNIMPRESSIVE AGREEMENT.
3. IF THERE IS TO BE A SETTLEMENT ON ANY OTHER BASIS, THEN WE WOULD NEED ADDITIONAL INFORMATION BEFORE WE CAN COMMENT. THERE
IS NO INDICATION IN PEKING TEL UNDER REF WHAT PRECISELY ARE THE REGIONAL ROUTES FOR THE 6:2 RATIO. ONE IS OBVIOUSLY SHANGHAI.
CONFIDENTIAL
. IS THE OTHER
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