TNAG-0868-FCO40-1078-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 91

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ÖKINK IT MIGHT BE A SLIGHT EDGE OVER OPTION B. IT WOULD

INVOLVE NO UNFAVOURABLE PRECEDENT IN RESPECT OF CAPACITY,

WE WOULD SEE NO DIFFICULTY IF THE CHINESE WISHED TO REVERT

TO CHARTER OPERATIONS BETWEEN CANTON AND HONG KONG. IN APPROVING APPLICATIONS, WE WOULD PROPOSE TO RESPOND AS IN PARAGRAPH 4 OF OUR TELNO 630, ON THE ASSUMPTION THAT H.M.G. WOULD NOT RENEW CAAC'S T.O.P. FOR THE CANTON SERVICE.

11. TO SUMP UP, WE SEE THE BALANCE OF ADVANTAGE AS FAR AS HONG KONG IS CONCERNED IN OPTION C. BUT OPTION B WOULD BE

ACCEPTABLE PARTICULARLY WITH THE SLIGHT MODIFICATION WE HAVE SUGGESTED IN PARAGRAPH 8. IF AN AGREEMENT ON THE LINES OF OPTION A HAS TO BE CONTEMPLATED, THEN WE URGE THAT

(A) THERE SHOULD BE AN UNDERSTANDING WITH YOU ON THE TIMING

OF BA'S WITHDRAWAL FROM THE HONG KONG/PEKING ROUTE. WE SUGGEST TWO YEARS (PARA 3 OF OUR TELNO 672):

B) CONFIRMATION SHOULD BE OBTAINED FROM THE CHINESE THAT THE

LPTRY OF THE HONG KONG BASED CARRIER ON THE ROUTE WOULD RE

WITH FULL TRAFFIC RIGHTS AND ON AT LEAST NO MORE UNFAVOURABLE CAPACITY TERMS THAN FOR THE HONG KONG/SHANGHAI ROUTES; (C) CONSIDERATION BE GIVEN TO THE POSSIBILITY OF IMPROVING THE

IMBALANCE ON THE REGIONAL ROUTES BY OFFERING THE CHINESE

GREATER BENEFITS ON THE TRUNK ROUTE, FOR EXAMPLE, BY

OFFERING THE CHINESE TRAFFIC RIGHTS BETWEEN PARIS AND

LONDON.

12. PLEASE PASS COPY TO GOVERNOR, HONG KONG.

CATER

FILES

MARD

FRS

ARGO

LEGAL ADVISERS

MC BUTLER

MR

CORTAYY

M NHẬN V MISS BROWN

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