TNAG-2535-FCO40-3705-Proposed-amendment-to-Air-Navigation-(Overseas-Territories)--1992 — Page 8

CONFIDENTIAL

MDA 1841369h

рад

92

174606

MDLOAN 5182

518)

TOP COPY

on / Tonin

Q DIST ?

CONFIDENTIAL

FM FCO

TO PRIORITY PEKING

TELNO 690

OF 021716Z SEP 92 9

AND TO PRIORITY HONG KONG, UKREP JLG HONG KONG

INFO ROUTINE BTC HONG KONG, ATTC TAIPEI

HKC 180/4

BTC PLEASE HOLD COPY FOR MORRICES'

8X

88

NEXT VISIT

*

HONG KONG PERSONAL FOR GOVERNOR AND POLITICAL ADVISER

см

FCO TELNO 643, YOUR TELNO 1146, HK TELNO 2092: UK/TAIWAN AIR SERVICES: NEXT STEPS

SUMMARY

1. DOT HAVE REPORTED ON A MEETING WITH BA AT WHICH THEY DISCUSSED NEXT STEPS AND TIMING. THIS CONFIRMS AND FLESHES OUT TIMETABLE SUGGESTED IN FIRST TUR.

DETAIL

2.

BA CONFIRMED THAT THEY HAVE EXAMINED AND HAD TO REJECT ALL OPTIONS FOR SERVING TAIPEI OTHER THAN BY A SERVICE IN BA COLOURS AND AIRCRAFT. NOTHING ELSE IS MARKETABLE AND VIABLE. NEVERTHELESS BA RECOGNISE THE MERITS OF FINDING SOME FACE SAVER FOR THE CHINESE AND ARE ENDEAVOURING TO DO SO, SO FAR WITHOUT SUCCESS.

3.

BA ALSO UNDERSTAND THE NEED FOR AN ASSURANCE FROM THEM, BEFORE WE CALL IN AMBASSADOR MA, THAT THEY WILL BE STARTING SERVICES AS PLANNED. BA GAVE THIS ASSURANCE IN PRINCIPLE AND UNDERTOOK TO WRITE BUT MUST FIRST DISCUSS THIS AT CHIEF EXECUTIVE (SIR COLIN MARSHALL) LEVEL. THAT IS NOT TO SUGGEST BA LACK COMMITMENT TO THE INTRODUCTION OF TAIWAN SERVICES, BUT RATHER THAT THE LOSSES TO BA IF CHINA TAKES RETALIATORY ACTION COULD BE EXTREMELY HIGH, EG IF ALL BA OVERFLIGHTS OF CHINESE AIRSPACE ARE STOPPED. WHILST WE AND BA THINK SUCH EXTREME ACTION UNLIKELY, BA HAVE TO TAKE ACCOUNT OF IT IN DECIDING HOW CATEGORICAL AN ASSURANCE THEY CAN GIVE US ABOUT THE INTRODUCTION OF THE SERVICES. BA EXPECT TO BE ABLE TO WRITE IN THE NEXT WEEK OR TWO.