TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 237

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CONFIDENTIAL

Officials have undertaken that, in the event of Taiwanese retaliation, the Government would do its best to negotiate other arrangements that would help to compensate Cathay Pacific for any loss of revenue (one possibility would be to ask the Chinese to allow Cathay Pacific to overfly China on their routes to Japan

and Korea).

On this basis, the Hong Kong Government have

indicated that they support the proposal to re-open negotiations

with the Chinese.

Recommendation

7. I recommend that Ministers should approve the formula agreed ad referendum at official level; and that we should instruct HM Ambassador in Peking so to inform the Chinese

Government.

clearly help the DOT negotiating team's task in seeking

commercial concessions from the Chinese.

8.

I submit a draft telegram.

Its timing would

HKGD and MAED (having consulted the DOT) agree.

Our

Ambassador

or in Peking and the Governor of Hong Kong have been

fully consulted.

11 May 1979

CC:

Mr Cortazzi

Miss Brown

Mr Morland MAED Mr McLaren HKGD

CONFIDENTIAL

Lichand Sammel

R C Samuel

Far Eastern Dept