TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 20

ANRIVAL AND HAD BEEN GIVEN TO, UNDERSTAND THAT THE CHINESE WOULD'V HAVE NO OBJECTION TO THE REGIONAL SERVICES BEING OPERATED BY

CPA

WE HAD ACCEPTED THE CHINESE POINT ABOUT THE POSSIBLE

JUNCTION OF SERVICES AT HONG KONG IF CPA WERE ALLOWED TO OPERATE BETWEEN LONDON AND HONG KONG AND WE WERE PREPARED TO

SATISFY THEM ON THAT SCORE. BUT, SUBJECT TO THAT POINT ONLY, THE CHOICE OF CARRIER MUST BE MADE BY HYG, NOT BY THE CHINESE GOVERNMENT.

5 ROGERS WENT ON TO EMPHASISE THAT IF LU WERE TO SUSTAINN THE PROPOSITION HE HAD NOW PUT FORWARD, THIS WOULD INEVITABLY BE SEEN AS AN ATTEMPT TO INTERVENE. IN THE CHOICE BETWEEN THE

RIVAL HONG KONG BASED CONTENDERS, WHICH WAS A MATTER FOR WHICH HMG WERE RESPONSIBLE. THE INTRODUCTION OF SUCH A MAJOR ISSUE

AT THIS STAGE IN THE NEGOTIATIONS WOULD ALSO UNDERMINE LU'S CREDIBILITY AS A NEGOTIATOR. HE THEREFORE INSISTED THAT LU SHOULD CHECK BACK WITH HIS COLLEAGUES AND PARTICULARLY WITH HIS MINISTRY OF FOREIGN AFFAIRS BEFORE GOING ANY FURTHER ON THIS TACK.

E. LU STARTED TO EQUIVOCATE AT THIS POINT. HE SAID THAT THE

CARRIER TO BE SELECTED NEED NOT NECESSARILY BE FORMED SPECIALLY FOR THE PURPOSE, BUT HE WAS UNWILLING TO GIVE ROGERS A STRAIGHT ANSWER TO THE QUESTION WHETHER ASIDE FROM THE PROBLEM OF THE LONDON-HONG KONG ROUTE THE CHINESE WOULD OR WOULD NOT BE WILLING to-ACCEPT CPA. HE TRIED TO DODGE THE ISSUE BY ARGUING THAT SINCE WE OURSELVES HAD NOT YET DECIDED WHICH AIRLINE TO DESIGNATE, THE QUESTION DID NOT AT PRESENT ARISE. HE WOULD BE ABLE TO

ANSWERE ROGERS BETTER WHEN THE TIME CAME IN THE LIGHT OF THE CIRCUMSTANCES THEN, ROGERS REFUSED TO BE PUT OFF WITH THIS

:

1

AND INSISTED THAT LU SHOULD CONSIDER HIS POSITION VERY CAREFULLY

-AND GIVE HIM A CLEAR ANSWER THE FOLLOWING AFTERNOON.

DECLINED TO DISCUSS ANY OTHER TOPICS UNTIL THEN.

RE

GEORGE

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