TNAG-2537-FCO40-3708-Air-services-agreement-between-Hong-Kong-and-China-1992 — Page 8

assistance with this visit and it would also be much appreciated if the Ambassador could see Sir Colin during the visit.

I am copying this letter and the draft telegrams to Hugh Davies, Peter Ricketts and John Grainger.

Yous

الانام

Michael Fielder

International Aviation Directorate

CONFIDENTIAL

PRIORITY TO PEKING

AND PRIORITY TO HONG KONG, UKREP JLG HONG KONG,

INFO ROUTINE BTC HONG KONG, ATTC TAIPEI

HONG KONG PERSONAL FOR GOVERNOR AND POLITICAL ADVISER

OUR TELNO 643, YOUR TELNO 1146, HK TELNO 2092: UK/TAIWANESE 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

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.

4. YOU HAD ASKED WHAT FURTHER STEPS BA MIGHT TAKE BETWEEN NOW AND

THE INTENDED MEETING WITH AMBASSADOR MA TO SIGNAL THAT THEY WERE

PROCEEDING WITH THEIR PLANS UNDEFLECTED BY THE OUTCOME OF THE

LAST ROUND OF CONSULTATIONS. IT WOULD BE PREMATURE TO ADVERTISE

THE SERVICE OR SELL TICKETS AND OTHER ESSENTIAL STEPS, SUCH AS

APPOINTING HANDLING AGENTS IN TAIPEI OR SEEKING AN OPERATING PERMIT, ARE NOT PUBLIC MATTERS. IT LOOKS UNAVOIDABLE THAT THE

CALL BY MA WILL BE THE FIRST INDICATION THE CHINESE HAVE THAT BA

ARE PRESSING ON.

5. THE TIMESCALE IDEALLY WOULD THEN RUN AS FOLLOWS:

MID SEPTEMBER

INFORM AMBASSADOR MA (AS IN YOUR TUR )

MID TO LATE SEPTEMBER

ANY FOLLOW UP ON PRESS NOTICE WITH CHINESE (WE SUGGEST ANY

REDRAFTING IS BEST DONE BETWEEN YOU AND MFA RATHER THAN

TRYING TO RESOLVE THROUGH CHINESE EMBASSY HERE)

END SEPTEMBER

BA PUBLICISE SERVICE, START TO SELL TICKETS (BA ADVISE THAT

THEY COULD POSTPONE THIS STEP UNTIL MID OCTOBER IF NECESSARY

BUT WOULD PREFER NOT TO. EVA HAVE BEEN RELATIVELY SELF-

CONTROLLED OF LATE IN ADVISING THE MEDIA OF PROGRESS ON THIS

ISSUE, BUT WE COULD NOT EXPECT THEM TO HOLD OFF ADVERTISING

AND SELLING BEYOND END SEPTEMBER, NOR DO WE SEE ANY REASON

TO ASK BA OR EVA TO DO SO.)

BA AND EVA APPLY TO TAIPEI AUTHORITIES AND DOT RESPECTIVELY

FOR OPERATING PERMITS

SIR COLIN MARSHALL VISITS PEKING (SEE MIFT, NOT TO ALL)

EARLY/MID OCTOBER

TRY TO FINALISE PRESS STATEMENT WITH THE CHINESE (AND KEEP

TRYING UP UNTIL LAST MOMENT)

MID OCTOBER

ISSUE OF PERMITS TO BA AND EVA (EVA'S PERMIT ΤΟ BE

CONDITIONAL SO FAR AS POSSIBLE ON BA HAVING A PERMIT AND

OPERATING SERVICES DOT PURSUING WITH IT'S LEGAL ADVISERS)

W/C 25 OCTOBER

SERVICES COMMENCE

6. SEE SEPARATE TELEGRAM ON TIMING OF RESUMPTION OF UK/HK/PRC

TALKS (NOT TO ALL).