TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 82

GR 798

CONFIDENTIAL

DESKBY BOTH 1511032

FM PEKING 150975Z JUNE 79

CONFIDENTIAL

Akk184/2

19 JUN 1979

де

ПБ

TO IMMEDIATE FCO

TELEGRAM NUMBER 563 OF 15 JUNE 79

AND TO IMMEDIATE HONG KONG

INE

ло No 189/

X

See

180

173A

HONG KONG TELNO 791:

UK/PRC AIR SERVICES NEGOTIATIONS

1. IN PARAS 2 AND 3 OF THEIR TUR, HONG KONG ARGUE THAT THEY

ARE LIKELY TO SECURE A BETTER BALANCED DEAL ON THE REGIONAL

SERVICES WHEN THE CHINESE HAVE BUILT UP THEIR INFRASTRUCTURE AND

HAVE A BETTER IDEA OF THE DEMAND. THE QUESTION HONG KONG DO NOT

ANSWER, HOWEVER, IS HOW THEY WOULD PROPOSE TO PREVENT THE

CHINESE OPERATING ALL OF THE SERVICES BY APPLYING TO OPERATE

GENUINE CHARTERS, PSEUDO CHARTERS OR EVEN SCHEDULED SERVICES. IF THE CHINESE WERE TO PRESS HARD FOR THESE, PAST PERFORMANCE SUGGESTS HONG KONG WOULD ARGUE AND WE SHOULD BE FORCED TO AGREE,'

THAT IN THE INTERESTS OF SMOOTH RELATIONS AND TO ENSURE THAT

HONG KONG REMAINED THE MAJOR DROPPING-OFF POINT FOR BUSINESS

AND TOURIST TRAVEL TO CHINA WE OUGHT TO AGREE. HONG KONG

TELEGRAMS 1351 AND 1356 OF NOVEMBER 1978 AND 447 OF APRIL

1979 ARE RELEVANT. HONG KONG APPEAR TO BELIEVE THAT THE CHINESE WILL IN EFFECT OFFER SOMETHING FOR NOTHING IN THE FUTURE.

I BELIEVE THEY ARE OFFERING SOMETHIN ON THE REGION NOW MAINLY

IN EXCHANGE FOR A TRUNK ROUTE AGREEMENT. THIS IS WHY THE MFA

WERE PREPARED TO PUT SOME PRESSURE ON CAAC TO AGREE, FOR EXAMPLE,

THAT A HONG KONG BASED CARRIER SHOULD HAVE THE RIGHT TO OPERATE

TO PEKING WHEN BA COME OFF THE SECTOR - SOMETHING THAT ON

COMMERCIAL GROUNDS THEY HAD NO REASON TO CONCEDE. HONG KONG.

CANNOT BE EXPECTED TO DO BETTER ON THEIR OWN.

2. I APPRECIATE THAT THE CHINESE ARE LOOKING TO HONG KONG BASED

FIRMS FOR TECHNICAL COOPERATION, BUT THEY WILL MANAGE TO OBTAIN

WHAT THEY WILL REQUIRE WITHOUT GIVING ANYTHING AWAY IN TERMS

OF RECIPROCAL AIR SERVICES. SO FAR AS TOURISM IS CONCERNED,

THEY ARE ALREADY GETTING ALL THE HELP THEY WANT. AS REGARDS

COMPUTERISED BOOKING SYSTEMS, IF CPA REFUSE THEY CAN GO TO

JARDINES. IF BOTH REFUSE THEY CAN GO OUTSIDE HONG KONG.

CONFIDENTIAL

IF

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