TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 51

SECRET

ld you in July we are not prepared to push BA off the

Hong Kong routeing to Peking which is the only economic option they have unless by so doing we can be sure to gain access for

CPA.

However it is essential to resolve the dispute over Tianjin/Peking services, which will become acute next summer, in a way which ensures that some UK airline gets a reasonable share of the additional capacity over and above 5 x B707s which will be

needed between Hong Kong and Peking next summer. evidence to suggest that even in 1982 CAAC were thinking of

There was

operating 7 Tianjin services, and we should like to know what capacity you judge will be needed next year between Hong Kong

and Peking.

Extension of the status quo is unacceptable because it results in an unsatisfactory indirect service for the travelling. public and invites CAAC to continue to abuse their right to provide an unreciprocated service. to Tianjin in order to maintain and extend a permanent monopoly on Hong Kong/Peking services to which they are not entitled either by the 1979 agreement or by their permits which reflect it. important to try to negotiate a way out of this situation now not just in air services terms but also in the wider context of Hong Kong's relations with China since monopoly services

have implications for sovereignty.

It is

we

If you are not prepared to have a show down in the interests of

so in our

CPA services on this route, the only practical option if the

demand is to be met on anything other than a monopoly basis by

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