TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 187

CONFIDENTIAL

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CONFIDENTIAL

DESKBY F C O 2411130Z

DESKBY PEKING 250123Z

FM HONG KONG 241119Z MAY 79

TO IMMEDIATE F C O

TELEGRAM NUMBER 638 OF 24 MAY

INFO IMMEDIATE PEKING

HKK 184

SLEIVED IN AEGISTRY NO. 51

2 9 MAY 1979

DESK OFFICER

INDER<

RE

ما

INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON

123 24

830.5

A

PEKING TELNOS 478, 479 AND 480: AIR SERVICES NEGOTIATIONS.

1. WE AGREE THAT IT IS HIGHLY DESIREABLE TO TRY AND GET

RECIPROCAL RIGHTS ON THE HONG KONG/PEKING SECTOR OF THE TRUNK ROUTE. BUT IF THIS CAN ONLY BE ACHIEVED AT THE PRICE OF AN

INDEFINITE MONOPOLY FOR CAAC ON ALL THE REGIONAL ROUTES, IT WOULD BE UNACCEPTABLE IN HONG KONG. WE ARE INCIDENTALLY NOT CLEAR FROM

PARAGRAPH 2 OF PEKING TELNO 478 PRECISELY WHAT LIMITED RIGHTS

ARE BEING OFFERED TO BA. NOR ARE WE CLEAR HOW RIGHTS FOR A

LIMITED PERIOD WOULD PROVIDE AN ACCEPTABLE OPTION FOR BA ALTHOUGH

WE NOTE FROM PARAGRAPH 2 OF PEKING TELNO 489 THAT THIS IS ROGER'S

VIEW.

2. AS SUGGESTED IN OUR EARLIER TELEGRAMS, WE ARE NOT WORRIED ABOUT A TEMPORARY IMBALANCE, PROVIDED ALWAYS THAT IT IS ACCEPTED NOW IN PRINCIPLE THAT REDR ESS WOULD BE AVIALABLE IN THE FUTURE (MY TELNO 616).

3. WE ARE, AS A LAST RESORT, PREPARED TO ENVISAGE A SITUATION WHERE CAAC HAVE A MONOPOLY ON THE HONG KONG/PEKING ROUTE BUT

ONLY ON THE CLEAR UNDERSTANDING THAT OPPORTUNITY FOR RECIPROCITY WILL BE AVAILABLE ON ALL OTHER REGIONAL ROUTES. IN SUCH A CASE

VE THINK A CAAC MONOPOLY SHOULD BE OF LIMITED DURATION AND SUBJECT

TO RECONSIDERATION AFTER THAT PERIOD.

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