TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 22

CONFIDENTIAL

WOULD BE NO DIFFICULTY. THERE MUST THEREFORE BE SOME WAY IN WHICH THIS QUESTION COULD BE LEFT OPEN. LU WAS MOST RELUCTAN EVEN TO CONSIDER THIS POSSIBILITY: BUT ROGERS FLOATED WITH HIM THE IDEA (WHICH HE MADE PLAIN HE WAS PUTTING FORWARD ON HIS CWN INITIATIVE AND FOR WHICH HE WOULD NEED TO SEEK YOUR AUTHORITY) THAT A PROVISO SHOULD BE ADDED TO THE CHU WHICH WOULD ENABLE THE CHINESE TO BLOCK THE IMPLEMENTATION OF THE AGREEMENT UNTIL ANY DIFFERENCE OF OPINION OVER THIS ISSUE HAD BEEN RESOLVED. LU WAS NOT EVEN RECEPTIVE TO THIS. HE CONTENDED ILLOGICALLY THAT SUCH AN ARRANGEMENT WOULD DE WORSE THAN HAVING NO AGREEMENT AT ALL. HOWEVER, WHEN ROGERS SAID HE THOUGHT THERE WAS LITTLE CR NO PROSPECT OF YOUR AGREEING TO GIVE CAAC THE OPTION TO OPERATE TO HEATHROW, LU AGREED AT LEAST TO REFLECT ON THE

MATTER OVERNIGHT.

5.

IN THE COURSE OF THE LONG DISCUSSION ON THIS TOPIC LU CONFIRMED THAT HE HAD CHECKED BACK ON ROGERS' STATEMENTS ABOUT THE CONGESTION AT HEATHROW AND OUR ALIPORT POLICY AND HAD FOUND THEM TO BE CORRECT. THIS DID NOT HOWEVER DETRACT ONE WIT FROM HIS STUBBORN INSISTENCE THAT QUOTE CAAC MUST BE FREE TO CHOOSE

UNQUOTE.

6. IGENCE BY THEIR NEGOTIATIONS WITH SINGAPORE DURING THE PAST FEW DAYS WHICH THEY CLAIM WENT EXTREMELY WELL.

THE CHINESE MAY WELL HAVE BEEN ENCOURAGED IN THEIR İNTRANS-

CEORGE

FILES

MAED

FED

HK & GD

NEWS D

MR CORTAZZI

MISS BROWN

MR MURRAY

[COPIES SENT TO CAD/DOT]

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