CONFIDENTIAL MEMORANDUM OF UNDERSTANDING
REGIONAL ROUTES
At their meetings in Peking from 18 May to 26 July 1979, delegations representing the Government of the United Kingdom
of Great Britain and Northern Ireland and the Government
of the People's Republic of China reached the following understandings regarding provisional arrangements for the establishment and operation of scheduled air services between Hong Kong on the one hand and Peking, 'Shanghai and other
Chinese cities on the other:
1.
References in this Memorandum to "the Agreement" are references to the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China relating to Civil Air Transport initialled on 26 July 1979, at Peking.
2.
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The United Kingdom and China may each designate an airline
to operate scheduled services between Shanghai and Hong Kong; such services may commence after the date on which this
Memorandum takes effect. The airline designated by the
United Kingdom will be an airline other than that designated under Article 3 of the Agreement, which has its base in Hong Kong, and which does not operate services between London and Hong Kong. The designated airlines will together agree on the capacity and frequency to be operated on the Hong Kong- Shanghai route, applying the principle that the designated
/airline
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