TNAG-1343-FCO40-1773-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 100

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various Chinese points to be operated by a Chinese airline and a Kong Kong-based airline (other than one serving London). The Hong Kong-based airline would not be allowed to serve Peking

while BA routed its London-Peking services over Hong Kong.

22. The arrangements for Hong Kong-China services are heavily weighted in China's favour and became even more unfavourable to us when Cathay began services to London. The Chinese have allowed Cathay to serve Shanghai twice a week but have refused to let it serve Peking. They have, however, allowed BA to carry Hong Kong-Peking traffic on its weekly London-Peking service. On the other hand, they now operate nearly 50 weekly services between various Chinese points and Hong Kong. They also operate charter flights in fairly large numbers.

23.

Following agreement on the future of Hong Kong, it now seems appropriate to seek a more balanced pattern of services. In order to provide continuity of British services between Hong Kong and Peking we have agreed that BA may negotiate a twelve-month extension of their agreement with the Chinese under which they carry Hong Kong- Peking traffic on their London-Peking service. (So far the Chinese

have agreed to a two-month extension of BA's rights on the Hong Kong-Peking route and to receive a BA negotiator in January 1985 to discuss future arrangements). During these twelve months, however,

we hope that the Chinese will be prepared to discuss arrangements for Cathay to serve Peking (in which case we should be prepared if necessary to require BA to use different intermediate points on its London-Peking service) and to obtain a fairer share of

the services between Hong Kong and Chinese points.

f) UN Law of the Sea Convention

The Convention

24. The Convention was opened for signature on 10 December 1982.

There are 138 signatories, including four non-state entities. It

will come into force one year after 60 ratifications or accessions;

there have so far been 14 ratifications. The final date for

signature was 9 December 1984. The Convention remains open for

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/accession