CONFIDENTIAL
DSR 11C
139 However, Chinese attitudes towards Hong Kong continued to moderate, especially after 1976. The 1973 Air Services Agreement had covered arrangements for non-scheduled flights between China and Hong Kong and in October 1977 China Resources Limited approached Hong Kong's Department of Civil Aviation (DCA) about the possibility of non-scheduled flights to carry perishable foodstuffs from China for which existing communications were not speedy enough! On that occasion the purpose of the flights was to import freshwater!! crabs from Shanghai and the application was granted by DCA for the period of the crab season until the end of the year. During 1978 the frequency of successful applications by CAAC for non-scheduled cargo flights to Hong Kong gained momentum, with each application being dealt with by 'DCA on an ad hoc basis.
D
140 In about July of 1978, CAAC began informal soundings of the possibility of arranging a series of "non-scheduled charter flights" in October in order to convey businessmen and other visitors to the autumn trade fair in Guangzhou (Canton). On 2 October a CAAC delegation formally put to DCA an application for permission to operate between 12 October and 18 November two return non-schedule flights daily between Guangzhou and Hong Kong. This, and a later extension of the period to 30 November was agreed by DCA. (In Hong Kong, the China National Aviation Corporation acted as general sales agent, China Travel Service the Charterer and Jardines the passenger handling agent.) This unprecedent series of flights between China and Hong Kong met with considerable success. It indicated a further strengthening of China's economic links with Hong Kong and served to express the good state of political relations between China and Hong Kong. Although the Chinese asked that CAAC and CAL aircraft would not be parked together at Kai Tak, the Director of Civil Aviation replied that this would be possible where airport schedules allowed but no guarantees could be given. The Chinese side accepted this arrangement and no indicents occurred through the simultaneous use of Kai Tak by CAAC and CAL.
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141
Through extensions of the permit to operate successive series of non-scheduled flights the distinction between scheduled and non- scheduled flights between Hong Kong and Guangzhou became very fine. indeed. Such services had proved of benefit to both China and Hong Kong so that Chinese officials began to indicate that the whole question. of both scheduled and non-scheduled flights within the framework of
a formal Air Services Agreement might be reviewed on the basis of the 1973
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