TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 40

Mr Donald

AIR SERVICES TO CHINA

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CONFIDENTIAL

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As you know, the DOT will be having air service talks with the Chinese in London in the week beginning 6 December. The need to agree a line for the UK side in those talks has raised once again the question of tactics on the Memorandum of Under- standing, and in particular, the question whether we could con- sider genouncing that Memorandum as part of our bargaining position. with the Chinese. (You will recall that when this idea was last mooted in the summer, the Governor of Hong Kong, after consulting the Executive Council, argued against it.)

2.

The D/Trade have now kindly sent me a draft of a letter which they hope to persuade Lord Cockfield to send to the Secretary of State on this subject. It is not, of course, open to us to formally question the draft, but I am sure that if there is any particularly difficult line of argument in it they would be open to suggestion that it be dropped or modified. I should be grateful if you and copy addressees could let me have any comments of that nature urgently so that I may pass them on to Mr Stevens in the DOT.

23 November 1982

c.c.

Mr Adams

Mr Clift HKGD

Mr Elliott FED

CONFIDENTIAL

J W D Gray

Maritime, Aviation and Environment Department