یاه
GRS 660
CONFIDENTIAL
FM PEKING 260750Z OCT 82
TO IMMEDIATE FCO
CONFIDENTIAL
TELEGRAM NUMBER 693 OF 26/10/82
AND TO IMMEDIATE DOT (CAIR) IMMEDIATE HONG KONG
UK/PRC AIR SERVICES
1.
HEAD OF CHANCERY CALLED ON LU RUILING ON 26 OCTOBER AND SPOKE AS INSTRUCTED IN YOUR TEL NO 495. GALSWORTHY ALSO ASKED WHETHER CAAC COULD AGREE TO THE PROPOSAL IN HIS LETTER OF 14 OCTOBER
TO LU THAT THE PRESENT ARRANGEMENTS
ON THE SHANGHAI/HONG KONG ROUTE SHOULD CONTINUE UNTIL
THE END OF NOVEMBER.
2. LU AT FIRST SAID THAT CAAC CONSIDERED CAPACITY
ON THE SHANGHAI/HONG KONG ROUTE TO BE WELL IN
EXCESS OF DEMAND. DEMAND WAS ONLY HIGH IN SEPTEMBER
AND OCTOBER. CAPACITY SHOULD THEREFORE BE REDUCED FROM
THE BEGINNING OF NOVEMBER.
GALSWORTHY CONTESTED THIS. HE BELIEVED THAT DEMAND JUSTIFIED
THE CONTINUATION OF CAPACITY AT THE PRESENT LEVEL. FLUCTUATIONS
IN CAPACITY FROM ONE SEASON TO THE NEXT WERE A GREAT INCONVENIENCE
TO THE TRAVELLING PUBLIC. CPA HAD AN OUTSTANDING REQUEST WITH CAAC TO USE TRI-STAR ON THEIR FLIGHT ON 30 OCTOBER.
THE SERVICE WAS ALREADY FULLY BOOKED. THIS ILLUSTRATED OUR BELIEF THAT CAPACITY WAS NOT EXCESSIVE.
3. LU SAID THAT CAAC HAD HAD MANY CANCELLATIONS ON ITS SHANGHAI/HONG KONG SERVICES. CAPACITY WAS EXCESSIVE. CAA WOULD REDUCE CAPACITY FROM 1 NOVEMBER TO SIX SERVICES PER WEEK. HOWEVER HE COULD AGREE THAT CPA COULD CONTINUE TO OPERATE THREE SERVICES PER WEEK UNTIL THE END OF NOVEMBER. THIS WAS CONDITIONAL UPON CPA AGREEING IN ADVANCE TO REDUCE CAPACITY TO THE PRE-APRIL 1982 LEVEL FROM DECEMBER TO THE END OF MARCH 1983.
4. GALSWORTHY UNDERTOOK TO REPORT THIS OFFER.
BUT HE ADDED THAT IN HIS VIEW WE SHOULD NOT REACH DECISIONS ABOUT CAPACITY BEFORE BOTH SIDES HAD HAD A CHANCE TO GO OVER THE STATISTICS TOGETHER IN TALKS. THIS WAS THE POINT OF THE TALKS. BOTH SIDES MUST MAKE A SERIOUS ATTEMPT TO ASSESS DEMAND. HE ASKED LU WHETHER CAAC COULD AGREE TO TALKS IN NOVEMBER.
LU SAID THAT HE WISHED TO CONCLUDE AGREEMENT ON CAPACITY FOR THE WINTER SEASON WITH THE EMBASSY BEFORE THE END OF NOVEMBER.
THIS WOULD GIVE TIME TO PREPARE FOR TALKS BETWEEN THE AVIATION AUTHORITIES, WHICH COULD BE HELD LATER.
CONFIDENTIAL
/GALSWORTHY
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