DEPARTMENT OF TRADE
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Jel. sent (amended), PS/Lnd Belsked
From the Secretary of State
Ps/MW Mithind
J
CONFIDENTIAL
The Rt Hon Francis Pym MC MP Secretary of State for
Foreign and Commonwealth Affairs Foreign and Commonwealth Office
Downing Street
London
SW1A 2AL
рег
7525,
Mr Gittard
Mr Daald
n Adans
п
HKK 184/1
FEO
HUGD
25 November 1982
View Francis,
AIR SERVICES WITH CHINA
Briefing for the Prime Minister's recent visit to China explained the difficulty we have in obtaining for British Airways and Cathay Pacific а reasonable share of air services between Hong
Kong and points in China. It noted the differences of view
between our two Departments which would need to be resolved
before the next round of air services discussions, which are now expected to take place in the week beginning 6 December. We need to agree a line by then on how we improve BA and Cathay s position without risking damage to the wider negotiations which
the Prime Minister set in train.
:
i A8 26 d
See (49
49
БС
Background
The most immediate issue at next month's negotiations will be the services to be operated after 31 March 1983. At present. the Chinese (CAAC) carry the lion's share of the traffic between Hong Kong and mainland China. Given the 50 CAAC services a week last
summer, there is a Cross disparity with the 4 services operated by Cathey and BA. We shall want to provide adequate capacity on a rapidly growing sentor, and for it to be shared on a reasonable besis by our two airlines and CAAC for services on the two major routes from Hong Kong to Shanghai, and to Peking.
P
CONFIDENTIAL
7
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