TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 191

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HE WOULD STRESS THE IMPORTANCE FOR OUR OVERALL RELATIONS OF

CONWLUDING AN AGREEMENT AND WOULD POINT OUT THAT BY HOLDING CUT FOR A MONOPOLY ON THE HONG KONG-PEKING ROUTE THE CHINESE WERE NOT ONY BEING INEQUITABLE AND, IN POLITICAL TERMS,

ILLOGICAL, BUT WERE ALSO JEOPARDISING THE PROSPECTS OF AN

AGREEMENT.

8.

HOWEVER, IN CHOOSING OUR LANGUAGE AND TACTICS WE SHALL

NEED TO KNOW WHETHER OR NOT THE HONG KONG-PEKING SECTOR IS

A STICKING POINT FOR YOU. IF IT IS WE WOULD NATURALLY SPEAK

IN THE STRONGEST TERMS TO THE CHINESE. IF IT IS NOT WE

WOULD CONTINUE TO PRESS VERY HARD FOR THE BEST DEAL WE CAN

GET, BUT BE PREPARED IN THE LAST ANALYSIS TO ACCEPT THE BEST DEAL WE COULD ON THE OTHER REGIONAL ROUTES. WHAT WE

WOULD NEED TO AVOID IS GETTING OURSELVES RIGHT OUT ON A LIMB AND HAVING IT SAWN OFF. OUR CREDIBILITY WOULD THEN HAVE BEEN IMPAIRED, AND THE CHINESE COULD DICTATE TERMS.

9. THIS IS A MATTER FOR YOUR JUDGMENT SEMI COLON BUT AS SEEN FROM HERE A PACKAGE WHICH WOULD NOT PROVIDE FOR A BRITISH CARRIER TO OPERATE ON THE HONG KONG-PEKING LEG ONCE BA'S TEMPORARY CONCESSION HAD EXPIRED WOULD BE UNACCEPTABLE IN AIR SERVICES TERMS AND DIFFICULT TO JUSTIFY TO PUBLIC OPINION.

ELINE

10.

I HAVE DISCUSSED THE ABOVE LINE WITH THE AMBASSADOR,

WHO AGREES GENERALLY,

11.

POINT OF DECISION COULD ARISE HERE OVER THE HOLIDAY

GRATEFUL THEREFOR FOR INSTRUCTIONS BY 250001Z

WEEKEND.

CRADOCK

FILES

MAED

FED

HK & GD

[COPIES SENT TO CAD/DOT]

MR CORTAZZI

MISS BROWN MR MURRAY

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