TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 40

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CONFIDENTIAL

THEIR OWN AND CCAC'S ADVANTAGE. THEY FORESAW NO DIFFICULTY

IN LEASING ANY AIRCRAFT THEY MIGHT NEED IN THE SHORT TERM AND MAKING AVAILABLE FINANCE FOR THE PURCHASE OF AIRCRAFT IN THE LONG TERM.

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NEWBIGGING INDICATED THAT IN ADDITION TO OPERATING SCHEDULE SERVICES INTO CHINA, JARDINES WOULD BE INTERESTED IN EITHER OPER- ATING CHARTER SERVICES OF THEIR OWN CR COLLABORATING WITH CAAC IN SUCH OPERATIONS (OR BOTH). HE CLAIMED THAT THEIR SUBSIDIARY EUPOAIR WOULD BE ABLE TO PROMOTE AND ORGANISE CHARTER TRAFFIC IN A MANNER WHICH HE FELT WOULD APPEAL TO THE CHINESE.

སཡ

5. IN VIEW OF JARDINES' CLEARLY. EXPRESSED INTEREST IN BEING DESIGNATED AS THE BRITISH OPERATOR FOR REGIONAL SERVICES INTO CHINA, AND SINCE CPA WERE ALREADY FULLY IN THE PICTURE, ROGERS CAVE NEWBIGGING A BRIEF OUTLINE OF WHERE WE HAD GOT TO SO FAR. NEWBIGGING SAID THIS LARGELY CONFIRMED WHAT HE HAD ALREADY HEARD THROUGH CHINESE CHANNELS.

6. E ROGER OMITTED FROM

i

SUMMARY ANY REFERENCE TO THE OBJECTIONS

THE CAAC HAD RAISED TO CPA OPERATING ON THE REGIONAL ROUTES TO CHINA IF THEY WERE ALSO PERMITTED TO OPERATE ON THE ROUTE BETWEEN LONDON AND HONG KONG. ZWOWEVER, IT EMERGED FROM SUBSEQUENT DISCUS- SION THAT NEWBIGGING WAS ALREADY WELL AWARE OF THVK POINT.

7. IN ORDER TO MINIMISE THE RISK OF LEAVAGE, ROGERS ALSO DID NOT REPEAT NOT INFORM NEWBIGGING OF THE ARRANGEMENT RECORDED

IN LINES 14-17 OF PARA 2 OF YOUR TELNO.365, ALTHOUGH THIS IS ALREADY KNOWN TO CPA. HE FELT THAT ABSENCE OF KNOWLEDGE OF THIS ARRANGEMENT WAS UNLIKELY TO AFFECT JARDINES' POSITION IN DISCUSSIONS WITH THE CAAC.

8.

NEWBIGGING HAS UNDERTAKEN TO LET ROGERS KNOW UPSHOT OF DISCUSSIONS WITH CAAC.

CRADOCK

[COPIES SENT TO CAD/DOT]

FILES

LEGAL ADVISERS

MAED

PS

HK & GD

PS/LPS

SEAD FED

PS/MR. BLAKER

PS/MR. RIDLEY

PS/PUS

SIR A DUFF MR.MURRAY MR. CORTAZZI MISS BROWN

2 CONFIDENTIAL