attached
A
10
SECRET
14.
We have considered whether there are alternative ways of bringing pressure on CAAC, Some have already been tried in vain. At our request CAIR have now looked into an idea that we might threaten to revoke or amend the permits for CAAC to fly from Hong Kong to Tientsin and Nanking because of its abuse of these
services to carry extra traffic to Peking and Shanghai. But Legal Advisers have not been entirely happy that we are on solid ground here. Moreover the Air Services Agreement would oblige us to allow time for consultation and this could drag on for months. Consultations would probably reach deadlock and we
might be faced with a break-down and need to initiate action
(eg notice of termination of CMU) at a worse time than now. (Prime Minister's visit, opening of Future negotiations etc). Mr Stevens' letter of 22 April argues clearly the case for serving notice now. We cannot identify any practical
alternative.
1
15. We conclude that provided it is made quite clear that FCO will closely monitor developments and that if necessary DOT will accept FCO advice at any time that the Future negotiations
make it necessary that we extricate ourselves, on whatever terms,
from an air services row, we can given the Governor of Hong
Kong the assurance he seeks
J
that we consider on balance that
it is best now to give CAAC notice of termination of the CMU.
As Mr Stevens suggests this is the only way we are likely to achieve a satisfactory agreement, providing a sound basis for air services over the coming years; if the status quo continued it would be a source of constant friction in UK/China/Hong Kong
relations.
23 April 1982
MB H.
PA B Thomson
Far Eastern Department
Cc: MAED
The manuscript additions and amendments
take
account of
HKGD
a second genes of comments from
UKED
SECRET
:
No comments yet.
Private notes are available after approval.