TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 74

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IT. IN ANY CASE THIS SOLUTION WILL GIVE THE HONG KONG BASED CARRIER A FIRM DATE BY WHICH THEY CAN COME ON THE ROUTE.

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3. ON 11B OF HONG KONG TELNO 791 PLEASE SEEK CHINESE AGREEMENT TO A BALANCE IN CAPACITY ON THE PEKING-HONG KONG ROUTE NO LESS FAVOURABLE THAN THE HONG KONG-SHANGHAI BALANCE (PARA 8 OF YOUR TELNO 564). WE AGREE THAT THERE IS NO POINT IN PRESSING 11(C) FURTHER,

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4. IN THE LIGHT OF HONG KONG'S COMMENT (PARA 5 OF TELNO 791) THAT THE FREQUENCY LIMITATION ON THE BRITISH CARRIER ON THE HONG KONG- SHANGHAI ROUTE COULD RENDER IT UNVIABLE, PLEASE SEEK TO HAVE WRITTEN INTO THE AGREEMENT SUCH MINIMUM FREQUENCY AS YOU CONSIDER VIABLE. WE WOULD NOT REGARD THIS AS A STICKING POINT.

5. THE MOST APPROPRIATE OCCASION ON WHICH AN AGREEMENT MIGHT BE SIGNED WOULD BE DURING CHAIRMAN HUA VISIT TO THIS COUNTRY IN OCTOBER BUT WE SHOULD NOT WISH TO PRESS THIS IF YOU SAW DANGER OR IF THE CHINESE WERE UNWILLING TO HAVE A DELAY. GRATEFUL FOR YOUR VIEWS ON A PUBLIC LINE ON THE NEGOTIATIONS, PARTICULARLY IF THE SIGNING IS

TO BE DELAYED.

CARRINGTON

FILES MAED

FED HAESD

PS Ps/hPS PS/MR BLAKER PS MR RIDLEY PS POS SIR. A.DUFF

MR CORTAZZl MISS BROWN MR MURRA

MURRAY

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COPIES TO: MR STEELE, DOT.

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