TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 159

2. WE AGREE WITH HANDLEY STEVENS THAT THE OUTCO OF THIS

ร

REVISŲ??

WAS HICHLY UNSATISFACTORY. CLAC DISPUTED OUR STATISTICS OF TRAFFIC

CARRIED DURING THE PERI UNDER REVIET, WHICH WERE BASED ON C...C'

OWN RETURNS TO THE CO IN HONG KONG, AN SOLL JOT PROTUTE

CO

RABLE STATISTICS OF THEIR OWN. IN THE ABSENCE OF VREME,T

OVER STATISTICS, IT PROVED I POSSIBLE TO HAVE CULSTATIVE DISCUSSIN

OF THE MAIN O.JECTIVE OF THE BRITISH TEAM - IS TO INCREASE CAPACITY

ON THE SHANGHAI-MONS KOM MITE PAKILO-HUNG KIN ROUTES WITH A

REASONABLE SHARE OF THE TRAFFIC SETV! CARTIED BY DRITISH AIPLI.ES.

CAAC REFUSED SERIOUSLY TO CONSIDER MOST OF THE PROPOSALS PUT

FORWARD BY THE BRITISH TEAM., AND THE HIGIRU BRITISH OBJECTIVE

AT THIS REVIEW - PERMANENT DESIATIS, FOR CATHAY PACIFIC V HA..

KONG-SHANGHAI WAS HOT CHIEVED. THE SOLE TANIBLE RESULT OF THE WEEK'S TALKS WAS A GENE 140 SEATS (IE 14 SEATS LESS THAN FULL 37 7 CAPACITY) PER WEEK INCREASE FOR CFA, THE PRICE BEING 28 BEATS FOR CAAC A PERPETUATION OF THE RIGID AL RESTRICTIVE 2 TO 1 RATIO.

WP

_MRA 184/301/1 (1981)

}

3. IN HIS LETTER OF 18 SEPTE BER 1991 TO YOU, SIR PERCY CHADO

EXPRESSED THE HOPE THAT THESE TALKS WOULD RED REAL PRESSURE BROUGHT

ON CAAC TO ALLOW BRITISH AIRLIES TO ENJOY REASONABLE SPARE " THE

MIR SERVICES CAKE. UNFORTUNATELY, ALTHOUGH THE CHINESE WERE T ́LD

LOTH ACROSS THE TABLE AND IN THE SITELINES THAT WE WERE EXTREMELY

DISSATISFIED WITH THE PRESENT ARRANGEMENTS, THE BRITISH TEAR DID NOT

EMPOWERED TO BRIO THAT NECESSARY PRESSURE T: LE. EVERYTHIC

ABOUT THE CHINESE PERFORMANCE - THE FAILURE TO PRODUSE PROPER STATISTICS, THEIR REFUSAL TO DISCUSS MOST OF OUR PROPOSALS, OI

TO PUT FORWARD AIY SUBSTANTIAL PROPOSALS OF THEIR OWN, THE VERY

LIMITED SCOPE THEY CUCCELDED IN IMPOSING UP IN THIS REVIEW''

DEMONSTRATED THEIR GENERAL SATISFACTION SITH THE PRESENT STATUS

QUO.

4. WE ARE NOT GOING TO GET REAL CHANGES UNTIL WE AXE PREPARED TO

MAKE IT UNEQUIVOCALLY, CLEAR TO THE CHINESE THAT THE STATUS QUO

CANNOT CONTINUE DEFINITELY. IN ADDITION TO OPERATING A STRICTER

REGIME ON NON-SCHEDULED FLIGHTS AND TIGHTEN UP ON THE OPERATING

PERMITS HK-TIANJIH AND HANKING, WE THEREFORE AGREE WITH STEVE IS (PARAGRAPH 4. OF TUR) THAT WE SHOULD AGREE TO SERVE ONE YEAR

NOTICE OF OUR WITHDRAWL FROM THE CHU GOVERNING RETIONAL SERVICEC.

STEVENS HAS RECOMMENDED THAT NOTICE SHOULD BE SERVED NOT LATER THAN

30 APRIL 1982. WE AGREE THAT IT IS IMPORTANT TO ACT THEN, TH FOR

THE REASONS STEVENS GIVES, AND BECAUSE, IF CIE YEAR'S NOTICE

WERE SERVED FOUR TO FIVE MONTHS BEFORE MRS THATCHER'S VISIT,

SITUATION WOULD NOT HAVE COME TO A HEAD BY SEPTEMBER. HOWEVER,

WOULD LE USEFUL IF THE PRIME MINISTER WERE TO RAISE BRIEFLY THE QUESTION OF AIR SERVICES DURING HER VISIT (AS IT WAS WHEN SPE

LITERVENED WITH HUA CUOFENG IN 1979).

}

THE

IT

15.