TNAG-0963-FCO40-1182-Air-services-between-China--Hong-Kong-and-the-UK-1980 — Page 6

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CONFIDENTIAL

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RECEIVED IN REGISTRY NO. 51 0 5 NOV 1980

DEAK OFFICER

REGISTRY

FM HONG KONG 040958Z NOV 80

TO IMMEDIATE F C O

TELEGRAM NUMBER 1457 OF 4 NOVEMBER

INFO HONG KONG GOVERNMENT OFFICE LONDON

PERSONAL FOR CLIFT (PLEASE PASS TO GOVERNOR)

INDAX

ملك

PA

Action Taken

$6.11.

FROM JEAFFRESON

ia

YOUR TELNO 985 AIR SERVICES TO CHINA.

YOU WILL RECALL THAT IN OUR TELNO 1339 TO FCO AND FOLLOWING DISCUSSION WITH BREMRIDGE WE AGREED WITH PEKING'S PROPOSED LINE (THEIR TELNO 657 TO FCC) AND SUGGESTED CERTAIN OTHER STEPS TO BE TAKEN TO SETTLE THE REGIONAL AIR SERVICES ARRANGEMENTS NAMELY (A) THE ISSUE OF PERMANENT PERMITS TO CAAC FOR CANTON AND THREE OTHER CITIES BUT NOT SHANGHAI, WITHOUT PRE-CONDITIONS AND (B) THE TRUNK ROUTE AND HK/PEKING ROUTES SHOULD BE PUT ON A PERMANENT BASIS. WE ALSO SUGGESTED A TWO-STAGE APPROACH TO THE SHANGHAI PROBLEM. THE FIRST STAGE WAS TO GET HKA AND CAAC FLYING THE ROUTE, AND SO WE WOULD WISH TO DISCUSS WHAT CHANGES MIGHT BE MADE IN THE STRUCTURE OF HKA'S OWNERSHIP SO THAT BOTH SIDES WOULD BE SATISFIED THAT THE CONDITIONS OF THE CMU WERE MET: THE SECOND STAGE WOULD BE TO REMOVE THE RESTRICTION IN THE CMU ON CPA AS SUCH FLYING TO SHANGHAI (AND LATER PEKING) IN RETURN FOR AN ADDITIONAL ROUTE FOR CAAC. WE ALSO SAID WE WOULD LIKE IT PUT TO THE CHINESE THAT WE SAW A RECONSTITUTED HKA FLYING TO SHANGHAI AS A TEMPORARY MEASURE.

2. IN THEIR TELNO 543 TO PEKING, FCO AGREED IN GENERAL WITH PEKING'S AND OUR PROPOSED LINE, EXCEPT THAT THE CONDITIONS FOR DISCUSSION OF THE WIDER CHINESE PROPOSALS FOR NEW ROUTES (SECOND STAGE) SHOULD BE TIGHTENED ON THE GROUNDS THAT IT WOULD BE WRONG TO CONVEY THE IMPRESSION THAT HMG WOULD COMMIT THEMSELVES TO A

POSITIVE OUTCOME TO THE DISCUSSIONS.

3. SINCE THEN WE HAVE, IN FACT, MOVED FORWARD TO FULL IMPLEMENTATION

OF THE REGIONAL ROUTES CMU EXCEPT FOR HK/SHANGHAI, BY DOT ISSUING

OPERATING PERMITS FOR THE PERIOD 1 NOV 198Ø 31 MARCH 1981

(THE LIMIT IS IN ACCORDANCE WITH STANDARD UK PRACTICE OF USING PERMITS FOR A SEASON) FOR PEKING/HK, CANTON/HK, HANGZHOU/HK, TIANJIN/HK AND KUNMING/HK. CAAC HAVE NO IMMEDIATE PLANS TO FLY FROM TIANJIN AND KUNMING, BUT REGULAR SERVICES HAVE BEEN OPERATED THIS WEEK FROM THE OTHER THREE CITIES. STRICTLY SPEAKING, THE PEKING SERVICE SHOULD NOT HAVE BEEN INAUGURATED BEFORE THE INTRODUCTION OF TRUNK ROUTE SERVICES ON 12 NOVEMBER

BUT HMG DID NOT OBJECT TO AN EARLIER START.

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