TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 38

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4. ON THE OTHER HAND LU WAS EMINENTLY REASONABLE IN DISCUSSION

ABOUT THE TIMING OF THE START OF THE VARIOUS SERVICES AND THE WAY

IN WHICH THE CMU'S AND FORMAL AIR SERVICES AGREEMENT WOULD F

TOGETHER.

5. LU ALSO DID NOT RAISE THE TOPIC OF GATWICK. SINCE WE HAD MADE OUR POSITION PLAIN AT THE DRAFTING GROUP MEETING ON 28 JUNE (PARA 2

OF OUR TELNO.599) AND IN VIEW OF EXTREME UNLIKELYHOOD THAT WE

COULD GET CHINESE TO ACCEPT WORDING WHICH WOULD STRENGTHEN OUR LEGAL POSITION AS COMPARED WITH RELYING ON TEXT OF ASA, ROGERS

THOUGHT IT UNPROFITABLE TO CARRY THIS FURTHER.

E

ROGERS REMINDED LU.OF THE LENGTH OF TIME THAT THESE NEGOTIA-

TIONS HAD NOW LASTED AND SUGGESTED THAT SOTH SIDES SHOULD NOW USE

THEIR BEST ENDEAVOURS TO FINISH THEM OFF PROMPTLY.

7.

FURTHER TO FINAL PAR A OF TUR, NEWBIGGING AND MCLEOD REPORTED

THAT THEIR DISCUSSIONS WITH CAAC WERE IN GENERAL TERMS AND THAT NO

SPECIFIC PROPOSALS WERE MADE ON EITHER SIDE.

8. WHEN DISCUSSION RESUMES ON DESIGNATION PROBLEM (PARA 3 ABOVE), ROGERS INTENDS TO TRY TO FIND SOME FORM OF WORDS WHICH WOULD LEAVE THIS QUESTIONVOPEN. IF THIS FAILS, AND IF THE CHINESE REFUSE TO BACK DOWN, WE MAY NEED YOUR URGENT DECISION ON HOW

FAR WE CAN GO.

CRADOCK

FILES

MAED

HK & GD

SEAD

FED

LEGAL ADVS.

PS

PS/LPS

PS/MR. BLAKER

PS/MR. RIDLEY

PS/PUS

SIR A DUFF MR.MURRAY MR. CORTAZZI MISS BROWN

[COPIES SENT TO CAD/DOT]

2,

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