TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 31

CONFIDENTIAL

EMBARRASSMENT TO CAA C. IT IS THEREFORE WE WHO ARE THE

DEMANDEURS. LU WAS ALSO NOT MOVED BY THE PARALLEL ROGERS AN

BETWEEN OUR POLICY OF EXCLUDING NEW AIRLINES FROM HEATHROW

THE CHINESE POLICY OF RESTRICTING THE USE OF THE MOST DIRECT (KARAKORAM) ROUTE TO PIA, IRANAIR AND CAAC.

4. IT WAS EVENTUALLY LEFT THAT WE WOULD PRODUCE A DRAFT CLAUSE TO SERVE AS A BASIS FOR FURTHER DISCUSSION TODAY (9 JULY). THIS HAS BEEN PREPARED ON THE LINES OF PARA 6 OF YOUR TELNO 358, WITH

A PROVISION FOR CONSULTATION BEFORE WE REACH A FINAL DECISION.

THE CHINESE ARE NOT LIKELY TO ACCEPT THIS. WE ASSUME THAT

ON THE OTHER HAND YOU WOULD NOT WISH TO CONCEDE THE CHINESE

POINT IN PARA 2 ABOVE, AT LEAST AT THIS STAGE. HOWEVER, THE GENTE HAS NOW BEEN LET OUT OF THE BOTTLE (OUR ALLOT 18, NOT TO HONG KONG) AND THE BEST WE CAN DO IS TO PUT IT ON ICE. ROGERS THEREFORE HAS IT IN MIND TO OFFER, AS A COMPROMISE, TO MAKE THE START OF SERVICES ON THE TRUNK ROUTE (THE TARGET DATE FOR WHICH HAS NOW BEEN AGREED AS 1 APRIL 1983) DEPENDENT UPON PRIOR

RESOLUTION OF THIS QUESTION. HOWEVER, THIS WOULD MEAN THAT TRUNK ROUTE SERVICES WOULD BE HELD UP INDEFINITELY IF THE

GATWICK POLICY WERE REAFFIRMED AND IF CAAC REFUSED TO ACQUIESCE.

THERE MAY BE OTHER IMPLICATIONS. ROGERS WILL THEREFORE BE

GRATEFUL FOR YOU CONCURRENCE OR ALTERNATIVE SUGGESTIONS,

5. IN VIEW OF YOUR TUR ROGERS WAS CAREFUL NOT TO BRING ANY OF

THE OTHER ISSUES TO THE CRUNCHM

CRADOCK

L

FILES

MAED

FED

HK & GD

LEGAL ADVS. PS

PS/LPS

PS/MR, BLAKER

PS/MR.RIDLEY PS/PUS

MR.BUTLER MR.CORTAZZI MISS BROWN MR.MURRAY

[COPIES SENT TO CAD/DOT]

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