TNAG-0869-FCO40-1079-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 173

221

GR 220

CONFIDENTIAL

DESKBY 24010OZ

TO IMMEDIATE HONG KONG

TELNO 574 OF 23/7/79

CONFIDENTIAL

Sae (223)

FOR GOVERNOR FROM MCLAREN.

AKKI84/2 OPY

2 5 JUL1979

no 1825.7

HONG KONG TELNO 1037: UK/PRC AIR SERVICES NEGOTIATIONS

1. WE AND THE DOT WOULD BE VERY RELUCTANT TO AUTHORISE THE

DELEGATION TO CONCLUDE AN AGREEMENT COVERING REGIONAL SERVICES

WITHOUT YOUR CONCURRENCE. IN THE LIGHT OF THE STRONG ADVICE IN

HONG KONG TELEGRAM UNDER REFERENCE WE ARE INCLINED TO REITERATE

THE INSTRUCTIONS ON THE DESIGNATION OF THE HONG KONG-BASED CARRIER

IN FCO TELNO 399 TO PEKING. BEFORE DOING SO, HOWEVER, WE SHOULD

BE GRATEFUL FOR CONFIRMATION THAT YOU ENDORSE THE LINE IN HONG

KONG TELEGRAM UNDER REFERENCE, AND IN PARTICULAR THE VIEW THAT THERE IS A REASONABLE CHANCE THAT A BETTER DEAL COULD BE OBTAINED

IF THIS QUESTION WERE DROPPED FROM THE AGREEMENT AND TAKEN UP LATER.

AS YOU KNOW, THE EMBASSY IN PEKING HAVE CONSISTENTLY TAKEN THE a) OPPOSITE VIEW, MOST RECENTLY IN PEKING TELNO 660.

2. PARAGRAPH 4(B) OF HONG KONG TELEGRAM UNDER REFERENCE WAS CLEARLY

DRAFTED ON THE ASSUMPTION THAT CPA WILL SUCCEED IN THEIR APPLICATION

TO GET ON TO THE LONDON ROUTE. YOU SHOULD KNOW THAT IT IS UNLIKELY THAT ANY NEW CARRIER WILL BE SELECTED FOR THIS ROUTE UNTIL THE NEW YEAR.

3. IT WOULD BE HELPFUL TO HAVE YOUR COMMENTS DESKBY 24083OZ.

CARRINGTON

FILES

HK & GD

MAED

FED

NEWS D

LEGAL ADVS MR CORTAZZI MISS BROWN

COPIES TO: DOT/CAD

CONFIDENTIAL