TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 149

CONFIDENTIAL

6. I HAVE BEEN TRYING TO DECIDE WHETHER OUR INTERESTS WOULD BEST BE SERVED BY ACCEPTING SOME COMPROMISE TO THE OBJECTIVES SET OUT IN TELNO 317 (BUT NOT TO OBJECTIVE C) IN ORDER TO REACH AN AGREEMENT AT THIS TIME OR TO STICK TO THE OBJECTIVES EVEN IF IT MEANS WITHDRAWING FROM PEKING AT THIS TIME.

7. I AM INCLINED TO THE SECOND COURSE BUT SINCE WE DO NOT YET HAVE LU'S REACTION TO THE PROPOSALS, IT IS TOO EARLY TO REACH A CONCLUSION, NOR IS IT NECESSARY SO TO DO.

8. I AM SENDING THE ABOVE AS HOPEFULLY USEFUL BACKGROUND INFORMATION TO WHICH I DO NOT EXPECT A REPLY UNLESS YOU WOULD LIKE FURTHER CLARIFICATION. AT THE TIME OF WRITING, 1100 ON THE FIRST OF JUNE, THERE HAS BEEN NO RESPONSE OR REQUEST FOR A FURTHER MEETING FROM THE CHINESE SIDE,

CRADOCK

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COPIES SENT TO CAD/ DOT

FILES

MAED

FED

HKO GD

MR BUTLER

MR CORTAZZI

MNR MURRAY

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CONFIDENTIAL