SECRET
41679 1
ALSO CONTINUED TO MAINTAIN THAT CAAC SERVICES TO CITIES OTHER THAN
PEKING AND SHANGHAI WERE A SEPERATE MATTER FOR WHICH PROVISION WAS
ALREADY MADE AND WAS NOT RELEVANT TO THE QUESTION OF CAPACITY ON
THE HONG KONG/PEKING AND HONG KONG/SHANGHAI SECTORS IRRESPECTIVE
OF THE ULTIMATE DESTINATION OF THE PASSENGERS CARRIED.
3.
THE CHINESE CONTINUED TO DENY CPA'S RIGHT TO BE DESIGNATED
FOR SHANGHAI SERVICES ON THE GROUNDS THAT IT OPERATES BETWEEN
HONG KONG AND LONDON. IF IT WAS PROPOSED TO CONTINUE CPA SERVICES TO SHANGHAI IN SUMMER 1983 THE CHINESE AUTHORITIES WOULD HAVE TO
CONSIDER THE MATTER ONCE APPLICATION WAS MADE TO THEM. IT MAY BE
SUFFICIFENT TO REGARD THE RESUMPTION OF THE CURRENT DISCUSSIONS
ABOUT THE CAPACITY TO BE OPERATED NEXT SUMMER AS A SUFFICIENT
APPLICATION, BUT IF LU RUILING INSISTS ON A LETTER OF APPLICATION BEFORE A FURTHER ROUND OF NEGOTIATION TAKES PLACE THIS CAN BE
ARRANGED.
น
THE CHINESE SAW NO PROSPECT OF AGREEMENT TO THE UK'S
REQUEST FOR A CPA SERVICE TO PEKING BUT IN PRIVATE DISCUSSION WITH
STEVENS (DOT) MILES (CPA) AND LATHAM (HKG), LU RUILING UNDERTOOK
ON A PERSONAL BASIS TO RECOMMEND TO HIS AUTHORITIES A WIDE RANGING
EXCHANGE OF VIEWS OVER THE COMING MONTHS. HE THOUGHT THAT CON-
CLUSIONS COULD NOT BE REACHED QUICKLY AND APPEARED TO BE ALLUDING
TO WIDER DISCUSSIONS WHICH MIGHT INFLUENCE THE OUTCOME. HOWEVER,
HE WAS READY TO CONSIDER ANY REASONABLE PRACTICAL PROPOSAL WHICH
WOULD TAKE ACCOUNT OF THE INTERESTS OF BOTH PARTIES.
5.
IN ORDER TO GIVE THESE DISCUSSIONS WITH CPA A REASONABLE
CHANCE IT WAS NECESSARY FOR STEVENS TO TELL LU THAT BA WOULD NOT
BE OPERATING THEIR PEKING SERVICES VIA HONG KONG INDEFINITELY,
ALTHOUGH NO DATE FOR THEIR MOVING TO A DIRECT ROUTING COULD YET
BE GIVEN SINCE THIS DEPENDED UPON BA'S COMMERCIAL JUDGEMENT.
THE SERIOUSNESS OF OUR INTENT WAS UNDERLINED BY BA'S WITHDRAWAL
OF ALL OFFERS RELATING TO THE CARRIAGE OF TRAFFIC BETWEEN HONG
KONG AND PEKING.
6.
SHORTLY BEFORE THE TALKS COMMENCED IT WAS AGREED BETWEEN
MINISTERS INCLUDING THE PRIME MINISTER THAT THE NEGOTIATIONS
SHOULD BE CONDUCTED WITHIN THE FRAMEWORK OF THE 1979 ARRANGEMENTS
AND WITHOUT THREATENING WITHDRAWAL FROM THEM, BUT THAT IF IN
**
2
SECRET
No comments yet.
Private notes are available after approval.