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PP HONG KONG
GRS 316
CONFIDENTIAL
FM FCO 141145Z JULY 82
TO PRIORITY HONG KONG
TELEGRAM NUMBER 540 OF 14 JULY
INFO PEKING
(WP)
MY TELNO 483: REGIONAL AIR SERVICES
1.
>
fas 18617
LORD BELSTEAD AND MR SPROAT DISCUSSED THIS ON 12 JULY.
FCO AND DOT OFFICIALS WERE PRESENT.
2.
LORD BELSTEAD EXPLAINED THE REASONS FOR HONG KONG'S VIEW
THAT NO ACTION SHOULD BE TAKEN NOW EITHER ON NOTICE OF TERMINAT-
ION OR ON THE TIANJIN AND NANJING SERVICES. HE RECOGNISED
THE AIR SERVICE ARGUMENTS IN FAVOUR OF ACTION. THE CHINESE WERE OUT TO GAIN WHAT THEY COULD. BUT THE MATTER WAS A POLITICAL
ONE. HE EMPHASISED THE IMPORTANCE OF THE PRIME MINISTER'S VISIT
AND THE RELEVANCE OF THE CHINESE VIEW ON SOVEREIGNTY OVER HONG
KONG. IT WOULD BE A MISTAKE TO RISK SOURING THE ATMOSPHERE FOR
THE VISIT OR SUBSEQUENT NEGOTIATIONS ON WIDER ISSUES OR GIVING
THE CHINESE THE PRETEXT FOR AN INCIDENT SUCH AS AN ATTEMPT TO
LAND AIRCRAFT AT KAI TAK AGAINST OUR PROHIBITION. IT MIGHT
HOWEVER BE THAT AFTER THE PRIME MINISTER'S VISIT WE COULD
CONSIDER WHETHER A MORE ROBUST ATTITUDE WOULD BE ACCEPTABLE.
3. MR SPROAT SAID HE WOULD WANT TO KEEP ALL OPTIONS OPEN UNTIL
AFTER THE PRIME MINISTER'S VISIT BUT HE ACCEPTED THAT NO FUR THER
ACTION SHOULD BE TAKEN WITH THE CHINESE ON AIR SERVICES BEFORE
THEN. BUT IN HONG KONG HE WOULD WISH TO REPEAT THE EARLIER
ARGUMENTS IN FAVOUR OF ACTION, NOTABLY THE DANGER OF GIVING THE
CHINESE THE IMPRESSION THAT THEY COULD GET AWAY WITH ANYTHING
WITH HMG OVER AIR SERVICES. NOT ONLY WOULD CAAC PRESS HOME THEIR
ADVANTAGE TO THE DETRIMENT OF CPA AND BA: ADDITIONALLY OUR
WEAKNESS WOULD TEND TO ENCOUR AGE OTHER AIRLINES SUCH AS MAS OR
SIA TO BE GREEDY AND DIFFICULT. IN ADDITION TO THE GOVERNOR
HE WOULD PROBABLY DISCUSS THE MATTER WITH CPA IN HONG KONG. ON
HIS RETURN IT WOULD BE NECESSARY TO CONSIDER HOW THE PRIME
MINISTER SHOULD BE BRIEFED TO DEAL WITH AIR SERVICES DURING HER
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