TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 35

CONFIDENTIAL

200

Ga Sie'

FIDENTIAL

SKBY 851358Z

FY PEKING 059934Z JULY 79

TO IMMEDIATE FCO

ник 1844/20

51

TELEGRAM NUMBER 612 OF 5 JULY 86-7.

AND TO IMMEDIATE HONG KONG

STAY

Takı

Rar

Mr Wilkamison

See (201

204

199 TELNO 615: UK/PRC AIR SERVICES NEGOTIATIONS

MY

1.

IT SEEMS QUITE CLEAR FROM LU'S COMMENTS AS REPORTED IN TUR THAT, DESPITE THE STRONG POLITICAL PUSH ON 27 JUNE, THE CHINESE ARE NOT PREPARED TO GIVE WAY ON THE OUTSTANDING POINTS.

ON 5 JULY ASSISTANT FOREIGN MINISTER SONG TOLD US THERE WERE

NO DIFFERENCES BETWEEN THE POSITIONS OF THE MFA AND CAAC.

2. ! THIN WE SHOULD ACCEPT THIS AND BRING THE NEGOTIATIONS

TO A SWIFT CONCLUSION PY AGREEING TO THE CHINESE TERMS. THESE

ARE WITHIN PRESENT INSTRUCTIONS, WITH THE EXCEPTION OF THE

MARROV INTERPRETATION THE CHINESE HAVE PUT ON THE NUMBER OF

SEATS TO BE AVAILABLE ON BA'S TRUNK ROUTE SERVICES, WHICH |

UNDERSTAND WILL NOT BECOME A PRACTICAL DIFFICULTY UNTIL SOME

CONSIDERA LE TIME AFTER SERVICES START.

3. THE REMAINING OUTSTANDING ISSUE NOT COVERED BY INSTRUCTIONS

IS THE CHINESE REFUSAL SO FAR TO ALLOW US TO DESIGNATE AS A

''LOCAL HONG KONG CARRIER ONE THAT OPERATES BET EEN LONDON AND

HONG KONG THE CHINESE INTENTION IS NOT TO DETERMINE WHO OPERATES BETWEEN LONDON AND HONG KONG (PARAGRAPH

195

103 2 OF YOUR TELNO 378 AND PARAGRAPH 3 OF OUR TELNO 500), BUT TO ENSURE

THAT ANY CARRIER FLYING LONDON/HONG KONG CANNOT ALSO FLY THE

REFIONAL ROUTES (SINCE, IN THEIR VIEW, THIS WOULD EFFECTIVELY GIVE-US A SECOND ROUTE LONDON/CHINA) 1 FEAR THAT WE SHALL

HAVE TO GIVE WAY ON THIS POINT. BUT WE SHALL ATTEMPT TO DO SO

IN SUCH A WAY AS NOT TO PRECLUDE CPA (OR ANY OTHER AIRLINE)

FROM PUTTING IN A BID TO OPERATE BOTH ROUTES, SAY SY USING SEPARATE COMPANIES ON THE LONDON/HONG KONG AND ON THE REGIONAL

ROUTES.

CONFIDENTIAL

14.