TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 241

CONFIDENTIAL

agreement of Hong Kong based services with Chinese cities would

be inconsistent with the formal Chinese position on sovereignty

over Hong Kong. There is no reason to suppose that this will

prevent a deal being done. The latest telegram from Peking A(G7 (434 of today) suggests that the Chinese are likely to be

1 (434_08

flexible. The important point for us is not whether the regional

routes are covered in the main ASA

-

all concerned on the British

side and the Hong Kong Government are content that if necessary

they can be agreed separately but that on our side of the table

they should be conducted by HMG and not by the Hong Kong Govern-

ment. This is because air services to Hong Kong from other

points in the world are one of our most powerful bargaining

counters in general air service negotiations and the DOT naturally

wish to retain control over them. A precedent was set for an

agreement between HMG and the Chinese Government on regional

routes when a regular a service between Hong Kong and

Canton was agreed earlier this year.

4.

arise.

We will submit again as necessary if difficulties should

FED and the Hong Kong Department agree.

сс

Mr Murray

Mr Samuel FED

Mr McLaren HK&GD

THIS

COPY

FOR

11 May 1979

MR Morland

Maritime, Aviation and Environment

Department

CONFIDENTIAL