TNAG-1434-FCO40-1917-Hong-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1986 — Page 276

CONFIDENTIAL

Thailand. These applications are being considered and are

likely to be heard by ATLA in the second quarter of 1986.

Non-Scheduled Services (Charter Flights)

6.

Charter

airlines seek the necessary approval

flights fall

outside the bilateral ASAS;

themselves from the

DAL

occasional charter

aeronautical authorities at both ends of the route.

have, since their inception, mounted

flights mainly to Malaysia and Thailand. DCA Hong Kong

have n ow given permission for DAL to approach the

aeronautical authorities in a number of countries about

charter services (PRC, Japan, Korea, Malaysia, Philippines,

thailand and the Netherlands). Permission to operate a

regular series of charter services to London was refused by

DCA Hong Kong at the beginning of February on the grounds that DAL had failed to show that there was a genuine demand that could not be met by the existing scheduled carriers

(CPA, British Airways and British Caledonian). This is in

accord with the publicly stated Hong Kong policy. DAL have

resubmitted

for more detailed application

now

further, a

charter services

by DCA Hong Kong.

to the UK which is

is still being considered

HMG is not able to intervene.

7.

to

services

response

Frequent attempts by DAL to operate charter

the PRC have been largely thwarted by the slow

of CAAC. The Ambassador in Peking has complained to the

MFA about this and Dr Wilson has also raised the subject

with the Chinese Ambassador. So far only very limited

operations to Xiamen have been approved by the Chinese.

UK/PRC Air Service Relations

8.

The

emergence of DAL as a fledgling airline in Hong Kong has also complicated Our bilateral air service relations with the PRC. The Secretary of State may recall raising the question of obtaining a fairer deal for CPA on routes between Hong Kong and China with Wu Xueqian in June

1985.

CONFIDENTIAL