TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 135

YE

Mr

Adams

Don

AKK 184/1

BAN A REĜASER, MO 51

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ass

1⁄2 & Alift. CONFIDENTIAL

плануван Thank you. I have now see

gr. Colegrain

UK/CHINA AIR SERVICES . rem reporting. til

1.

Pa

217/5 81715.

15

We spoke. I have discussed with Sir E Youde the proposal that subject to the Hong Kong Government's final concurrence we should serve 12 months' notice on the Chinese of termination of CMU covering regional services.

2.

Sir E Youde has asked that no action be taken on this until he has had an opportunity to discuss it with senior officials in Hong Kong. While he understands that the DOT have agreed that we might backpeddle on our air services position if it looked as though negotiations on the future of Hong Kong might be endangered, he considers that such a device would be mistaken in itself. He considers that if one adopts a tough position with the Chinese one should sure that one can stick to it. It would be wrong to

weaken.

3.

At the same time he does believe that we must avoid souring the atmosphere for discussions on the future. He carries this further by pointing out that, in trying to get a reasonable deal with the Chinese on Hong Kong, it is very important to convince the latter that Hong Kong as it stands is of benefit to them economically. The possibility that in a year's time we might cut all air links between China and Hong Kong, or even the threat that this might happen, could well make the Chinese authorities doubt our interest in conducting relations to our mutual economic benefit.

4.

Sir E Youde fully accepts the importance of being tough with the Chinese on specific issues such as the regional services to Tianjin and Nanjing.

5.

Since we spoke I telephoned Mr Roberts in DOT who has asked if possible to talk to Sir E Youde before he leaves. This might be difficult to arrange but Mr Roberts has given me two main points to pass on to Sir E Youde:

a) In the DOT's view this is not a purely Hong Kong issue.

If a debate is opened up with China on the whole air services question there may be an opportunity to improve BA's operating conditions, eg with regard to the pick up of passengers in Hong Kong.

b) All the DOT's recent experience in negotiation with CAAC suggests that results can only be achieved by a really tough line.

бир

R D Clift

Hong Kong and General Department

13 May 1982

cc Sir E Youde

Mr Gray MAED Mr Thomson FED

CONFIDENTIAL

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