TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 203

CONFIDENTIAT,

8. IT WAS AGREED TO LEAVE THIS AFTERNOON FOR REFLECTION BOTH

SIDES. THE TWO LEADERS WILL AGAIN NEET TETE A TETE TOMORR CU

MORNING.

£

9. COMMENT. BA CONSIDER THAT WITH A BIT MORE PUSHING AND

SHOVING THE OFFER ON THE TRUNK ROUTE WOULD PROBABLY BE

ACCEPTABLE TO THEM. THE REAL DIFFICULTY NOW APPEARS TO BE

THE CHINESE INSISTENCE ON DRIVING A VERY HARD BARGAIN ON

THE REGION.

10. THE EMBASSY CAN SEE NO POLITICAL REASONS WHY THE CHINGESE

SHOULD DRAW A DISTINCTION BETWEEN THE SERVICES BY A BRITISH CARRIER FROM HONG KONG TO PEKING AND SERVICES BY A BRITISH CARRIER FROM

HONG KONG TO SHANGHAL. 1T APPEARS THAT ONCE AGAIN THE CHINESE ARE USING A POLITICAL ARGUMENT IN ORDER TO OBTAIN A COMMERCIAL

ADVANTAGE.

11. SUBJECT TO YOUR VIEWS ROGERS THEREFORE PROPOSES TO

CONTINUE BARGAINING WITH LU WITH A VIEW TO OBTAINING THE BEST

POSSIBLE DEAL ON THE RESTONAL ROUTES. ANY INFORMATION THAT

HONG KONG CAN PROVIDE ABOUT THE SELATIVE VALUES OF PEKING, SHANGHAI, NANJING, XIAN AND OTHER POINTS "OULD BE EXTREMELY USEFUL IN ASSESSING THE VALUE OF POSSIBLE DEALS

CON REFERNCE IN MY TELNO 469 SHOULD READ MY TELNO 467

CRADOCK

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BK & GD

HR CORTAZZI MISS BROWN MR MURRAY

COPIES TO CAD/DOT

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CONFIDENTIAL