TNAG-1372-FCO40-1818-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 133

CONFIDENTAL

5. AT THE PEKING TALKS THERE WAS AGREEMENT IN GENERAL TERMS ON THE

NEED FOR MORE CAPACITY ON THE HONG KONG/PEKING ROUTE AND

MAINTENANCE AT LEAST OF ALL CURRENT CAPACITY ON HONG KONG/SHANGHAI,

BUT THERE WAS NOT TIME BEFORE THE END OF THE TALKS TO DISCUSS THE

QUESTION OF THE INTRODUCTION OF SCHEDULED SERVICES AND CAPACITY

ON OTHER ROUTES.

6. FIRST ROUND OF TALKS CAME TO AN UNEXPECTEDLY EARLY END APPARENTLY

BECAUSE OF UNRESOLVED INTERNAL DIFFERENCES WITHIN THE CHINESE

ADMINISTRATION.

7. DURING HIS VISIT TO PEKING AT THE END OF SEPTEMBER, THE S OF S FOR T URGED VICE-PREMIER LI PENG AND CAAC TO RESUME THE NEGOTIATIONS AT AN EARLY DATE AND TO AGREE THAT THEY SHOULD REACH

A SATISFACTORY CONCLUSION AT THE NEXT ROUND, WHICH IS NOW AGREED

SHOULD BE IN LONDON IN EARLY NOVEMBER (PRECISE DATES YET TO BE

AGREED).

8. HKG RECOGNISE, IN THE LIGHT OF EXCHANGES AT THE FIRST ROUND OF

TALKS THAT ITS OBJECTIVES ARE NOT ATTAINABLE IN TOTO. HOWEVER, THE

CHINESE SHOULD BE SUSCEPTIBLE TO THE IDEA THAT HONG KONG MUST BE

SEEN TO BE GIVEN A REASONABLE SLICE OF THE HONG KONG/CHINA AIR

TRANSPORT CAKE.

YOUDE

LIMITED

HRD

FED

MAED

PS/MR RENTON

SIR WHARDING

DR

WILSON

2

CONFIDEN MAL