TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 90

PS/Lord Belstead

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CONFIDENTIAL →

COVERING SECRET

12.00 THURSDAY.

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10 30 MONDAY

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AIR SERVICES

1. For Lord Belstead's meeting with officials on 8 July (in preparation for his meeting with Mr Sproat on 12 July), I attach copies of the following papers:

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2.

a) Mr Thomson's submission of 30 April. This recommended

that, subject to the views of the Governor of Hong Kong, notice should be served on the Chinese of termination of the Regional Confidential Memorandum of Understanding (CMU) on Air Services.

b) Hong Kong Telno 607 giving the Governor's and Executive

Council's view that it would be unwise to give notice

of termination.

c) FCO Telno 483 to Hong Kong accepting this but explaining

the DOT's misgivings about discussions without the sanction of termination. The telegram mentions

Mr Sproat's wish to discuss the question with the Governor during his visit to Hong Kong.

d) Letter of 16 June to Mr Gray (MAED) from Mr Roberts, DOT.

e) Mr Donald's reply of 22 June.

The last two items show DOT's unhappiness at the restraints on their proposed tough line with the Chinese and the reasons why Hong Kong's special position makes circumspection necessary. Mr Sproat may wish to pursue the general question with Lord Belstead and with the Governor. From the Hong Kong angle the key point is that the Governor must be heeded if he considers that Hong Kong's overriding political interests would be put at risk.

7 July 1982

Bolip

R D Clift

Hong Kong and General Department

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Mr Gray MAED

Mr Elliott FED

CONFIDENTIAL COVERING SECRET

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Mr Clift