TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 227

CONFIDENTIAL

GRS 365

CONFIDENTIAL

FM HONG KONG 160655Z MAY 79

TO PRIORITY F C O

TELEGRAM NUMBER 583 OF 16 MAY

HER 184/2

106

TAGAPAD IN REGMINY MO. 51

17 MAY 1979

DESK OFFICER

REGISTRY

C

ken

INDEX

PA

Mo

281.5

INFO PRIORITY PEKING, ROUTINE HONG KONG GOVERNMENT OFFICE

LONDON.

UK/PRC AIR SERVICES AGREEMENT.

گل

P.A.

1. AT MEETINGS WITH ROGERS, WE HAVE STRESSED THREE POINTS (1) IT

IS IMPORTANT FOR HONG KONG THAT ANY AGREEMENT SHOULD PROVIDE FOR REGIONAL ROUTES FROM HONG KONG TO POINTS IN CHINA TO BE OPERATED BY A HONG KONG BASED AIRLINE: (11) WHILE WE ACCEPT THAT PEKING AND SHANGHAI SHOULD BE POINTS FOR THE TRUNK ROUTE OPERATOR, WE BELIEVE IT SHOULD BE OPEN TO A REGIONAL OPERATOR TO FILL IN IF DEMAND EXCEEDS THE CAPACITY OF THE TRUNK ROUTE OPERATOR: (111) IF THE ASA ALLOWS FOR ONLY A SINGLE AIRLINE (BA) TO BE DESIGNATED FOR BOTH THE TRUNK AND REGIONAL ROUTES, THEN WE WOULD FACE SERIOUS POLITICAL DIFFICULTIES HERE. IT WOULD BE SAID THAT HMG HAD MINIPULATED THE AGREEMENT IN BA'S FAVOUR AND AGAINST A HONG KONG BASED AIRLINE. WE WOULD BE 'LEFT WITH TRYING TO EXPLAIN WHY ROUTES FROM HONG KONG INTO CHINA HAD BEEN TREATED DIFFERENTLY FROM OTHER REGIONAL ROUTES. THIS WOULD THROW INTO QUESTION HMG'S USE OF LANDING RIGHTS AT KAI TAK.

2. WE REPEATED OUR VIEW THAT THE CHINESE WERE LIKELY TO INSIST ON

SEPARATE ARRANGEMENTS FOR TRUNK AND REGIONAL SERVICES. SUCH ARRANGEMENTS WOULD BE QUITE ACCEPTABLE TO HONG KONG. IN THIS CASE WE THOUGHT IT UNLIKELY THAT THEY WOULD OBJECT TO DIFFERENT AIRLINES BEING DESIGNATED FOR THE TWO SERVICES. FURTHERMORE IN SUCH CIRCUMSTANCES, THEY WOULD BE IN A POSITION TO WITHSTAND POSSIBLE AMERICAN PRESSURES FOR MULTIPLE DESIGNATION IN ANY US/CHINA ASA WHICH WOULD BASICALLY BE CONCERNED WITH TRUNK ROUTES

ONLY.

CONFIDENTIAL

/3. ROGERS