TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 56

GRS 360

CONFIDENTIAL

CONFIDENTIAL

FM PEKING 22830AZ JUN 79

TO PRIORITY FCO

TELEGRAM NUMBER 532 OF 22 JUNE

INFO PRIORITY HONG KONG,

FOLLOWING FROM DELEGATION.

NIR CUR TELNO.581;

-HKK184/2.

IN

2 5 JUN 1979

BR = R

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RY

по

825.6 |

M

Mr

2

(189)

Wilkarion

UK/PRC AIR SERVICES NEGOTIATIONS.

1. THE LONG AWAITED PLENARY SESSION WAS HELD ON 21 JUNE.

2.

ROGERS STARTED OFF WITH A PREPARED STATEMENT IN WHICH HE SAID THAT MINISTERS HAD, WITH RELUCTANCE, AUTHORISED HIM TO CONCLUDE UNBALANCED ARRANGEMENTS ON THE LINES THAT HAD EMERGED FROM HIS INFORMAL DISCUSSIONS WITH LU DURING THE PAST MONTH. THIS WAS, HOWEVER, ON THE UNDERSTANDING THAT THESE ARRANGEMENTS WOULD BE REVIEWED IN THE REASONABLY NEAR FUTURE. WE WERE CONFIDENT THAT IT WOULD THEN BE POSSIBLE TO FIND AN ACCOMMODATION WHICH MORE NEARLY MET THE PRINCIPLES OF EQUALITY AND FAIRNESS TO WHICH WE ATTACHED SO MUCH IMPORTANCE. THE ONLY NOTEWORTHY POINT LU MADE IN HIS REPLY WAS THE FAMILIAR ONE THAT WHILE THE CHINESE WERE VERY READY TO CONCLUDE A BALANCED AGREEMENT FOR THE TRUNK ROUTE, THEIR VIEW OF THE STATUS OF HONG KONG MEANT THAT THEY DID NOT CONSIDER THAT THE CONCEPT OF BALANCE SHOULD APPLY TO THE REGIONAL ROUTES,

3.

AS REGARDS THE STRUCTURE OF THE UNDERSTANDINGS THEMSELVES IT WAS FAIRLY QUICKLY AGREED THAT IN ADDITION TO THE FORMAL ASA, THE DETAILED ARRANGEMENTS REGARDING THE TRUNK ROUTE SHOULD BE SET OUT IN ONE CMU AND THE UNDERSTANDINGS AFFECTING THE REGIONAL ROUTES IN ANOTHER.

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THERE THEN ENSURED A LONG DISCUSSION (THE MEETING LASTED MORE THAN FIVE AND A HALF HOURS IN ALL) ABOUT DIFFERENCES OF SUBSTANCE BETWEEN THE DRAFTS THAT THE TWO SIDES HAD PREPARED. IT EMERGED THAT THE CHINESE WERE INTENT ON CHISELLING US ON BA'S USE OF THE STOPOVER RIGHTS AT HONG KONG. DISCUSSION IS BEING CONTINUED AT A FURTHER PLENARY SESSION TODAY: BUT IT LOOKS AS IF WE STILL HAVE QUITE A LONG HARD SLOG AHEAD.

CONFIDENTIAL.

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