TNAG-0962-FCO40-1181-Possible-new-airport-for-Hong-Kong-1980 — Page 61

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GRS 600

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 130500Z SEPTEMBER 80

TO IMMEDIATE F C O

TELEGRAM NUMBER (1172) OF 13 SEPTEMBER

INFO IMMEDIATE PEKING

NIR

HKK 18211

COP

RECEIVED IN REGISTRY NO. 51

16 SEP 1980

RK. OFFICER

REGISTRY RActibÄKaken

MY TELNO 1169 PARA 3(B): REPLACEMENT AIRPORT FOR RANCAK aken

INDEX

мо

4129.

yir. Awiz

AW1719

FOLLOWING IS TEXT OF ACTING POLITICAL ADVISER'S LETTER OF 12- SEPTEMBER TO CLIFT HK AND G D.

NIR

Ì ATTACH A PAPER (TEXT IN MIFT) SUMMARISING THE

BACKGROUND TO INDICATIONS THAT THE CHINESE MIGHT BE INTERESTED IN THE AIRPORT WE ARE PLANNING TO REPLACE KAI TAK BEING SITED IN CHINA.

2. THIS POSSIBILITY WAS CONSIDERED RECENTLY IN EXCO. THE MAJORITY VIEW WAS THAT WE SHOULD CONTINUE PLANNING FOR THE

REPLACEMENT AIRPORT TO BE SITED IN HONG KONG. A SMALL BUT SIGNIFICANT MINORITY VIEW, LED BY SIR S Y CHUNG, WAS IN FAVOUR OF APPROACHING CHINA NOW ON A POSSIBLE JOINT VENTURE FOR AN AIRPORT LOCATED IN CHINA BUT CLOSE TO THE BORDER WITH HONG KONG.

3. WE HAVE SUMMARISED THE ARGUMENTS FOR BOTH POINTS OF VIEW IN THE PAPER. BECAUSE THE ISSUES INVOLVED ARE IMPORTANT AND OPINION WITHIN EXCO IS NOT UNANIMOUS, GRATEFUL FOR YOUR VIEWS AND THOSE OF PEKING ON THE ARGUMENTS AND THE CONCLUSIONS.

4/1

4. IN PARTICULAR WE WOULD LIKE CONFIRMATION THAT OUR ARGUMENT ON AIR SERVICES AT PARAGRPAH 10(B) IS A VALID INTERPRETATION OF THE REQUIREMENTS OF THE CHICAGO CONVENTION. IT SEEMS TO US THAT AIR TRAFFIC RIGHTS HAVE TO REMAIN WITH THE POWER UNDER WHOSE SOVEREIGNTY AN AIRPORT LIES (BUT THERE MAY BE EXCEPTIONS, MULHOUSE-BASLE AND PERHAPS GENEVA). IF WE ARE RIGHT AND CHINA WOULD NOT BE WILLING TO SURRENDER SOVEREIGNTY OVER THE SITE OF AN AIRPORT IN CHINA, THEN THERE IS LITTLE POINT IN LOOKING AT ANY OTHER SORT OF AGREEMENT WITH CHINA OVER AIR TRAFFIC RIGHTS. OUR REASONING IS THAT IF AN AGREEMENT WERE NEGOTIATIED, THE USE OF RECIPROCAL RIGHTS BY BRITISH AIRLINES IN EXCHANGE FOR RIGHTS AT THE NEW AIRPORT IN CHINA WOULD BE SUCCESSFULLY CHALLENGED IN TERMS OF THE CHICAGO CONVENTION BY THE OTHER PARTIES WHO WOULD PRESUMABLY MUCH PREFER THE RELATIVELY UNCOMPETITIVE CAAC TO TAKE THEM UP.

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CONFIDENTIAL

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