TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 229

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BELEIVED IN REG., RY AG. 51 i

17 MAY 1979

DESK OFFICER

INDEX

PA

No

Ja5

REGISTRY Action Take

FM BCARFE HONG KONG 160950Z MAY

TO PRIORITYD.O.T.

TELEGRAM NUMBER ALLOT 35 OF 15 MAY, 1979.

FOLLOWING FOR STEELE FROM ROGERS.

UK/PRC AIR SERVICES NEGOTIATIONS

1. POLICY ISSUES ARISING FROM OUR IMPENDING NEGOTIATIONS IN PEKING HAVE BEEN DISCUSSED FULLY, FIRST WITH HONG KONG OFFICIALS

AND SUBSEQUENTLY TODAY WITH THE GOVERNOR.

2. ALL CONCERNED FULLY AGREE THAT WE SHOULD SEIZE OUR OPPORTUNITY

TO CLINCH THE BEST DEAL THAT WE CAN AT THIS TIME AND THAT WE SHOULD AIM IN ONE FORM OR ANOTHER (NOT NECESSARILY IN THE ASA ITSELF) TO COVER SO-CALLED REGIONAL SERVICES BETWEEN HONG KONG AND POINTS IN CHINA AS WELL AS THE TRUNK ROUTE.

3. THE ONLY SUBSTANTIAL TOPICS ON WHICH A DIFFERENCE OF VIEW EMERGED AT YESTERDAY'S MEETING WITH OFFICIALS WERE:-

(A) HONG KONG'S WISH THAT ARRANGEMENTS FOR SO-CALLED REGIONAL

ROUTES SHOULD BE NEGOTIATED BETWEEN HONG KONG AND THE

CHINESE PROVINCIAL AUTHORITIES.

(B) HONG KONG'S WISH FOR ANY REGIONAL SERVICES TO BE OPERATED

BY CATHAY PACIFIC AIRWAYS.

4. AS REGARDS (A), I REPLIED ON-PREVIOUSLY AGREED LINES THAT WHILE WE WERE ENTIRELY FLEXIBLE ABOUT THE MEANS BY WHICH REGIONAL SERVICES WERE TO BE COVERED, THE NEGOTIATION OF ARRANGEMENTS FOR SUCH SERVICES MUST, FOR POLITICAL AND

BOYCE CONFIRMED, PRACTICAL REASONS, BE UNDERTAKEN BY H.M.G.

BOTH AT THE MEETING AND IN RESPONSE TO A LATER ENQUIRY FROM THE POLITICAL ADVISER, THAT THIS WAS THE F.C.O. POSITION ALSO.. THIS POINT WAS NOT REPEAT NOT RAISED BY THE GOVERNOR DURING MY LENGTHY MEETING WITH HIM TODAY AND I THINK WE CAN THEREFORE TAKE THIS AS ACCEPTED.

5. AS REGARDS (B), 1 EMPHASISED THAT THE CHINESE HAD REFUSED DUAL DESIGNATION IN 1973 AND HAD NOT CONCEDED IT TO ANY OTHER COUNTRY SINCE. THEY WERE LIKELY TO BE APPREHENSIVE ABOUT THE

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