TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 200

GRS 285

CONFIDENTIAL

DESKBY PEKING 233130Z

DESKBY FCO

230808Z

FM HONG KONG 232025Z MAY 79

CONFIDENTIAL

HKK. 184/2

119 fA

LEGATRY NO. 5

2 3 MAY 1979

TO IMMEDIATE F C O

TELEGRAM NUMBER 617 OF 23 MAY 79

INDE

AND TO IMMEDIATE PEKING

по

| J23.5

INFO HONG KONG GOVERNMENT OFFICE LONDON

Sel 122

113

PEKING TO FCO TELNO 478: UK/CHINA AIR SERVICES.

1. OUR POSITION REMAINS AS IN OUR TELNO 616, BUT IF THE ASSUMPTION IN OUR PARA 6 THAT THERE WOULD BE ROOM FOR A HONG KONG

BASED BRITISH CARRIER TO OPERATE BETWEEN HONG KONG AND PEKING PROVES IMPOSSIBLE TO SECURE, THEN WE WOULD WISH ROGERS TO FALL BACK ON A MODIFIED VERSION OF OPTION 'A' IN PARAGRAPH 7 OF PEKING TELNO 410.

2. AN IMPORTANT MODIFICATION OF OPTION 'A' MUST BE TO REMOVE ANY POSSIBILITY OF CAAC EXERCISING TRAFFIC RIGHTS BEYOND HONG KONG. THE CHINESE CLAIM THAT THEY REQUIRE POINTS BEYOND HONG KONG FON PRESENTATIONAL PURPOSES ONLY SEEMS TO BE INCONSISTENT WITH THEIR DESIRE TO AVOID MENTION OF HONG KONG IN THE ASA. PERHAPS THEY ARE JUST BEING DISINGENUOUS. BUT IT WOULD INDICATE THAT THEY MIGHT

BE PREPARED TO GIVE ON THIS POINT.

3. IF A HONG KONG BASED BRITISH AIRLINE CANNOT OPERATE FROM HONG

KONG TO PEKING THEN WE WOULD LIKE TO SEE AS MANY POINTS IN CHINA AS POSSIBLE INCLUDED IN THE CMU ON THE BASIS OF RECIPROCITY FOR CAAC AND A HONG KONG BASED BRITISH CARRIER. DECAUSE OF THE BUSINESS CONNECTIONS WHICH ARE LIKELY TO DEVELOP WITH HONG KONG WE CONSIDER IT ESSENTIAL THAT SHANGHAI BE ONE OF THESE POINTS.

4. WITH REGARD TO THE RELATIVE VALUES OF OTHER POINTS IN CHINA (PARA. 11 OF T.U.R.) SUME TOURIST BUSINESS COULD BE DEVELOPED WITH XIAN AND HANGZHOU, AND POSSIBLY NANJING AND CHENGDU.

5. WE ALSO THINK IT IMPORTANT THAT A HONG KONG BASED BRITISH

CARRIER'' SHOULD NOT REPEAT NOT EXCLUDE CPA.

MACLEHOSÊ

[CUPIES SENT

SENT TO CADIDOT]

FILES

MAED

FE'D

MR CORTAZZI

MISS BROWN

HKIGD

MR MURRAY.

COPIES

то

HONG KONG GOVERNMENT OFFICE

LUNDON