TNAG-0963-FCO40-1182-Air-services-between-China--Hong-Kong-and-the-UK-1980 — Page 4

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CONFIDENTIAL

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MR BLAKER'S MEETING WITH THE GOVERNOR OF HONG KONG : 6 NOVEMBER 1980 AT 15.00

21

HONG KONG/SHANGHAI AIR SERVICES

POINTS TO MAKE

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1.

We have 'made a number of concessions to the Chinese in an

effort to gain their acceptance of Hong Kong Airways (HKA). The

Chinese are not budging on HKA and the regional routes are now

heavily unbalanced.

2.

We cannot make further concessions. In particular, CAAC

should not operate Shanghai-Hong Kong until the Chinese accept

a Hong Kong based carrier. Can the Governor see a solution

satisfactory to both the Chinese and CPA?

AST PAI

3.

At the next round of talks with the Chinese we have

instructed our delegation not to discuss wider Chinese proposals,

DOT are quite firm that we cannot look at new proposals until

existing agreements are implemented in full.

CONFIDENTIAL