TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 194

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4. OTHER POINTS WHICH ARE RELEVANT TO THIS ISSUE ARE THAT: (A) LU SAID THE CHINESE WOULD NOT BE PREPARED FOR A BRITISH

CARRIER TO OPERATE BETWEEN HONG KONG AND SHANGHAI UNTIL BA

CEASED TO USE THE TEMPORARY CONCESSION ON THE SECTOR BETWEEN

HONG KONG AND PEKING.

(B) ON THE OTHER HAND, HE IS PREPARED FOR A BRITISH CARRIER TO OPERATE BETWEEN HONG KONG AND TIANJIN. (NATURALLY, NOT-

UNTIL THE BA TRUNK ROUTE CONCESSION BETWEEN HONG KONG AND

PEKING RUNS OUT.) LU TRIED HARD TO PERSUADE ROGERS THAT IN

VIEW OF THE SHORT DISTANCE (70 MILES) AND GOOD COMMUNICATIONS BETWEEN TIANJIN AND PEKING THIS WOULD IN PRACTICE BE

EQUIVALENT TO HONG PEKING: THIS SUGGEST THAT THERE IS AN ELEMENT OF POLITICS, HOWEVER MUDDLED, IN THEIR ATTITUDE. (C) LU AGAIN LET SLIP THAT HE WAS AWARE OF THE CONFLICTING INTERESTS IN HONG KONG. IT COULD BE THAT HE WAS PLAYING ON THIS IN MAKING THE STIPULATION IN (A) ABOVE.

H

5, WITHOUT LOCKING HIMSELF INTO A POSITION FROM WHICH WE MAY SUBSEQUENTLY HAVE TO RETREAT (SEE MIFT 2), ROGERS GAVE LU TO UNDERSTAND THAT WE COULD NOT ACCEPT AN ARRANGEMENT WHICH AFTER A SHORT PERIOD WOULD GIVE THE CHINESE A MONOPOLY

ON THE HONG KONG PEKING ROUTE AND THAT WE WOULD NOT BE

PREPARED TO SIGN UP ON THE TRUNK ROUTE WITHOUT SETTLING

AT LEAST THE HONG KONG

*ARRANGEMENTS.

PEKING ELEMENT OF THE REGIONAL

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5. AT A MEETING OF A LEGAL GROUP' THIS AFTERNOON THERE WAS A FIRST DISCUSSION FO THE TEXT OF THE ASA. THE FACT

THAT THE MEETING WAS HELD AT CHINESE SUGGESTION IS A FURTHER

INDICATION THAT THE CHINESE GENUINELY WISH TO REACH AGREEMENT

AT THIS ROUND.

7.

TOMORROW HAS BEEN SET ASIDE FOR REST AND REFLECTION

ON BOTH SIDES. BOTH ROGERS AND I FEEL IT IS ESSENTIAL TO

CONSULT YOU BEFORE TAKING MATTERS FURTHER.

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18.

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