TNAG-0869-FCO40-1079-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 165

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PEKING BY 24

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HOURS IF, IN THAT TIME, LU COULD GET REPLIES ON THE OUTSTANDING ISSUES WHICH WOULD ENABLE THE FINAL POINTS TO

BE CLOSED: BUT THAT IN VIEW OF THE STRONG MEDICAL ADVICE HE HAD

RECEIVED HE WAS UNABLE TO HANG ON ANY LONGER. LU THOUGHT IT

UNLIKELY THAT HE COULD MOVE FAST ENOUCH FOR THAT: AND THE TWO

PARTED AMICABLY ON THAT BASIS.

7. WE HAVE NOT PREVIOUSLY REPORTED THAT AS A RESULT OF THE

''END GAME'' REFERRED TO IN PARA 5 OF OUR TELNO.629 ROGERS MANAGED

TO EXTRACT THE FOLLOWING SMALL BUT USEFUL CONCESSIONS:

A) THE RESTRICTION ON BA'S (AND LIKEWISE CAAC'S) CAPACITY ON THE

TRUNK ROUTE IS TO BE EXPRESSED IN TERMS OF SEATS PER WEEK INSTEAD

OF SEATS PER FLIGHT. THIS ALLOWS SOME FLEXIBILITY BETWEEN THE

NUMBER OF PASSENGERS ON ONE FLIGHT AND ANOTHER.

B) ON THE BASIS OF (A) ABOVE THE LIMIT HAS BEEN INCREASED FROM

230 SEATS PER WEEK TO 399 SEATS PER WEEK.

C) LU RELUCTANTLY CONCEDED THAT CAAC'S MAXIMUM FREQUENCY BETWEEN

HONG KONG AND PEKING SHOULD BE LIMITED TO FIVE SERVICES PER WEEK

IN PLACE OF THE SIX FOR WHICH HE HAD BEEN PRESSING. IF THE FORE-

CASTS OF TRAFFIC FLOWS PROVIDED BY CPA AND BA ARE CORRECT, THIS WILL MEAN THAT CAAC ARE LIKELY TO BE HARD UP AGAINST THEIR

CEILING WELL BEFORE THE REVIEW IN 1931 AND THIS SHOULD PROVIDE

SOME USEFUL LEVERAGE THEN.

8. YOUR PARA 3. LU SAID THIS WAS STILL BEING CONSIDERED BY

THE MFA: BUT HE WAS EXPECTING AN ANSWER FROM THEM VERY SOON.

9. YOUR PARA 4. A MORE UP TO DATE VERSION OF THE PRESS BRIEFING WAS SUBSEQUENTLY SENT BY BAG TO BRYANT (DOT) AND THE LATEST VERSION WAS BROUGHT BY MISS COLES WHO RETURNED LAST WEEKEND. THIS BRIEFING IS OF COURSE BASED ON THE ASSUMPTION THAT THE AGREE- MENT AND CMUS WOULD BE CONCLUDED ON THE BASIS OF OPTION A.

THEY DO NOT REFER TO EITHER OF THE POINTS WHICH ARE STILL OUT- STANDING SINCE WE THOUGHT THEM TOO DETAILED FOR THE PRESS TO BE

LIKELY TO RAISE: WHILE WE HAD NO WISH TO DRAW ATTENTION TO THEM OURSELVES. IF, AS NOW SEEMS LIKELY, THE TALKS HERE END WITHOUT A CONCLUSION, WE ARE INCLINED TO SAY SIMPLY THAT THE FINAL STAGE

LOF THE

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