CONFIDENTIAL
to do so for some years to come. Of the two ways to
make some impression on CAAC, we should be on stronger
and less controversial ground in giving notice of
termination of the CMU than in attempting to curtail
the Tianjin and Nanjing services. It is not particularly
unusual or necessarily provocative to terminate such
understandings when they no longer meet current
circumstances, although it would be foolish to suppose
that the negotiations to replace it would be other
than keenly fought on both sides. Strong nerves would
be needed at the end, but it remains our view that a
renegotiation of the regional CMU need not have adverse
consequencies for relations between Hong Kong and China
generally. Indeed it is arguable that a firm stand in
support of modest ambitions to have a reasonable but by
no means greedy or excessive share of traffic between
Hong Kong and the principal Chinese cities, in accordance
with the intentions underlying the 1979 arrangements,
would be positively helpful as an indication of our
approach to the future development of Hong Kong's relations
Certainly in the narrower air services.
with China.
context our willingness to accept such patently unequal
arrangements will invite other countries to test our
resolve and lead them to expect that we will not support
the reasonable interests of our airlines. May not the
Chinese be tempted to draw similar conclusions about our
support for other Hong Kong commercial interests?
No comments yet.
Private notes are available after approval.