CONFIDENTIAL
From the Secretary of State
I have to add that We cannot simply sit still and do nothing
until the wider negotiations have reached some conclusion.
Traffic demand on the Peking route is
is considerable, and unless
some of the increased capacity is allowed to United Kingdom.
airlines we shall in effect have conceded to the Chinese the
right to carry all the traffic. This would be a major reverse in air service terms, and one which in my view would also set a very bad precedent for the other matters involving our sovereignty in Hong Kong.
We need to determine our strategy and objectives in good time for the negotiations commencing early next month.
If you need
to
consult the Governor of Hong Kong I attach a draft telegram which you may wish to send.
I am copying this letter and the enclosure to the Prime Minister
in view of her interest in negotiations affecting the Hong Kong/China relationship.
CONFIDENTIAL
57
lun,
LORD COCKFIELD
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