fco-21-1019-relations-between-hong-kong-and-china — Page 6

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4. No doubt CPA will make strenuous efforts to establish n claim to
these routes, and it may be that their purchase of Hong Kong Airways
will weigh with whoever has to make a final decision. We should,
incidentally, be very interested to see a copy of Bluck's letter
referred to in your telegram

/No 781.

CONFIDENT LAL

CONFIDENTIAL

No 781. But, as you say, the CPA service to Taipei makes it unlikely
that the Chinese would agree to their being designated, ilong Kong Air
international's bid certainly complicates the position, and Tommy
Thomson has told me that Sir John Keswick has also expressed interest in
ʼn service between Hong Kong and Canton.

5. You will no doubt be considering how to sort out this conflict of
interests at your end. As seen from here, this would be better dune with
the minimum of publicity. It would be somewhat artificial for the Hong
Kong ATLA to have a formal hearing and award the licence to fly to
Canton to a particular llong Kong airline when we are still very much in
the dark as to what the Chinese will agree to,

Copied to:

Mi Morgan Esq PEKING

RM Evans Esq

For Eastern Dept

E O Laird Esq MKLOD

C D Lush

Aviation & Telecommunications Department

-

CONFIDENTIAL

PRIORITY

CYPHER CAT A

PM PEKING 280635Z

CONFIDENTIAL

CONFIDENTIAL

RECE

1972

TO PRIORITY FCO TELEGRAM NO 1893 OF 20 OCTOBER INFO PRIORITY HONG KONG.

CHOU EN-LAI'S VIEWS ON HONG KONG.

Fall 3/22 FE$3

1. I ASKED TIMES CORRESPONDENT BONAVIA THIS MORNING TO TELL ME WHAT HAD
BEEN SAID ON HONG KONG DURING LORD THOMSON'S MEETING WITH CHOU EN-LA) ON
13 OCTOBER.

BONAVIA SAID THAT IT WAS LORD THOMSON WHO RAISED THE QUESTION, ASKING
PERSISTENTLY WHETHER CHOU COULD TELL HIM WHETHER HE WOULD BE WISE TO
INVEST MONEY IN HONG KONG. CHOU REPLIED ON THE WHOLE EVASIVELY AND ON
STOCK LINES, USING THE FORMULA THAT THE HONG KONG QUESTION WOULD BE
SETTLED BY NEGOTIATION WHEN THE TIME WAS RIGHT, BONAVIA SAID THAT CHOU
GAVE NO INDICATION

OF ANY TIMETABLE OR WHETHER THE EVENTUAL NEGOTIATIONS WOULD BE CONCERMED
WITH THE LEASED TERRITORIES ONLY OR THE WHOLE TERRITORY.

2.

BONAVIA MADE NO REFERENCE TO THE QUESTION OF CHINESE REPRESENTATION IN
HONG KONG AND I DID NOT THEREFORE QUESTION HIM ON THIS POINT.

ADDIS

FILES:

FED

HKIOD

NEWS DEPT

MR WILFORD

CONFIDENTIAL

نا

74

71

Xr Clark

Mr Evans

Mr Wilford

CONFIDENTIAL

F11-

HONG KONG/CHINA AIR LINK

1. On my minute of 11 October Kr #ilford asked to whom

CPA had expressed their clain for sole rights and on what

basis.

2.

B

CPA wrote to the Hong Kong Financial secretary on

11 August claiming the rights on historic grounds

E

-

Bince

CPA had taken over an earlier company which held these

rights. Hong Kong reported this in their telegram No 781

and replied to CPA on 26 August saying that note had been

taken of their position but action must await the negotiation

of an Air Services Agreement with China, Our corrent on the

CPA claim is contained in paragraph 3 of Mr Lush's letter of

22 september to Mr Jtratton.

19 October 1972

CONFIDENTIAL

H L1 Davies

Far Eastern Department

Mr Clark

Mr Evans

Kr Milford

CONFIDENTIAL

HONG KONG/CHINA AIR LINK

1. On my minute of 11 October Kr "ilford asked to whom

CPA had expressed their clain for sole rights and on what

basis.

D

14

2.

CPA wrote to the Hong Kong Financial Secretary on

11 August claiming the rights on historic grounds

-

since

GPA had taken over an earlier company which held these

rights. Hong Kong reported this in their telegram No 761

and replied to CPA on 26 Angust saying that note had been

taken of their position but action must await the negotiation

of an Air "ervices Agreement with China. Our comment on the

CPA claim is contained in paragraph 3 of Fr Lush's letter of

22 September to kr Stratton,

19 October 1972

CONFIDENTIAL

H L1 Davies

Far Eastern Department

Mr Clark

Mr Wilford

Mr Logan

COMMUNICATIONS BETWEEN HONG KONG AND CHINA

RECE

R:

k

IN

......30

CT 1/2

FE # 3/31/2

1. Mr Royle bas enquired what the present position i

regarding the proposed air shuttle service and the proposed

telex link between Hong Kong and Canton.

HONG KONG/CANTON AIR LINK

2. This question must be considered in the context of the

inter-governmental Air Services Agreement which we hope to

negotiate with the Chinese in the near future. À preliminary

meeting was held between DTI officials and the CAAC Delegation

which visited the United Kingdom in September. The DTI team

received the firm impression that the Chinese wanted an áir

Services Agreement but that they were not prepared to discuss

substantive points during the preliminary meeting.

3. The Hong Kong-Canton link is not the first priority for

us in negotiating an ASA. Our first priority should be a BOAC

route to Peking, although BOAC's first preference is to enter

China via Hong Kong. Whichever way one considers it liong Kong

considerably complicates the question of the Air Services Agreement.

First the Chinese regard Hong Kong as an integral part of China.

The CAAC delegation told the DTI that in their view we would have

two points in Chine, ie Hong Kong and another point. in

1

CONFIDENTIAL

/discussions

discussione with the Canadians the Chinese have said that

routings between Hong Kong and points in China would be regar as
internal routings. We shall clearly face problems on this point when
negotiations begin,

4. There are also internal Hong Kong complications. Cathay Pacific
Airways (CPA) have claimed sole rights for any direct service between
Hong Kong and China. Hong Kong Air Internation (Sir John Clague's
helicopter company) has also formally expressed interest in a route
between Hong Kong and Canton.

The DFI will have to sort out the respective claims.

5. The DTI in consultation with Aviation and Telecommunications
Department are preparing a draft Air Services Agreement for transmission
to the Chinese in the near future. They cannot yel forecast a date when
substantive negotiations will begin. TELECOMMUNICATIONS LINK

Kong pu

Kwan

The

6. The General Manager of Cable and Wireless in the

very successful visit to Canton at the invital.

tung Administration of Telecommunications (KAT) in June. two sides
agreed to consider the installation of a cable syster between Canton and
Hong Kong, each side to carry out the works on their own side of the
border. KAT said that they intend to route all Kwangtung international
traffic via Hong Kong. They envisaged that the cable would also carry
telex and leased circuits. They opposed Cable and Wireless's suggestion
for a tropospheric scatter or microwave link either on the whole Hong
Kong/Canton stretch or on the Hong Kong/Lowu stretch, insisting
(presumably for security reasons) on a cable all the

Under present traffic conditions the new cable will be

/uneconomic

way.

- 2 -

CONFIDENTIAL

uneconomic for Cable and Wireless but they believe that it i

a good opportunity to become involved in Chinese future over

communications activities. The Hong Kong Telephone Company

have already agrred to grant Cable and Wireless a qui licer:

operate the cable. Cable and Wireless have now formally in

the Chinese that they are prepared to go ahead with the pro,

The Chinese have not so far formally responded. The Deputy

Director of the KAT will visit Hong Kong with some ni his et

for seven days from 1 November, to visit Cable and Wireless

installations in the Colony, including their earth-satellit-

stations.

They will also presumably continue their discussion

about collaboration with Cable and Wireless.

7.

Aviation and Telecommunications Department and liong Ker

and Indian Ocean Department concur.

11 October 1972

cc Mr Hervey

A&TD HKIOD

H L1 Davies

Far Eastern Department

-3-

CONFIDENTIAL

76

CABLE A.

MINILLIGS LIMITED

MERCURY HOUS .HEOBALDS ROAD LONDON WC1

TELEGRAMS | CABLEWIRE LONDON WOI

+

TELEPHONE: ON242 4433 · LONDON TELEK 23181 (AQMIN. ONLY)

Please reply to the Secretary quoting referance and date

RECEIVED IN REGISTRY No.42

No 1 Whitby

Department of Trade and Industry Export and Livmuslint Dojunctmout
Norman Shaw New Building

Victoria Embankment

LONDON WC2

001

Mr W G Moore

9 OCT 1972

OPS/AWS

RECEIVED IN

!R.. Y

68etober 1972

Foreign & Commonwealth Offic04, OCT 1972

Dear Sir

EXPORT ENDÁROS

Ri Copy enterest gestoday? Mr Ecompton RC

Enter

With reference to our telephone conversation of yesterday, this letter
is to confirm that we have reached conditional agreement with the
Chinese Tolecommunicationa Administration in Kwangchow for the provision
of a land coaxial cable system between liong Kong and China. An initial
route survey has been completed to our satisfaction and we are now
seeking quotations from manufacturers for La suitable coaxial cable
system. As a consequence we

have been reminded that coaxial cable and certain other
telecommunication equipmont are on an embargo list insofar as export to
Communist China is concerned.

Attached are two schedules setting out details of the systems required
from British manufacturers, the first in respect of the Hong
Kong/Shumchun segment and the second in respect of the
Shunchun/Kwangchow (Canton) seyment. It is not yet cortain that the
Chinese authoritios will require British manufacturers to provide the
equipment for the second schedule (Shumchun/Kwangchow), but in any event
approximately 25mg of the Hong Kong/Shumchun segment (first schedule)
will be laid in Chinese territory and purchased by the Chinese
Administration.

Our negotiations with the Chinese Adrdnistration were carried out with
the full approval of both the Drition and Hong Kong Governments and in
view of tho prostige involved in this project quite apart from the
commercial nepecks we would appreciate it if arrangesien ta could be set
in motion for the embargo to be lifted on the coaxial cable and
telecommunication equipment necessary for this project. Certain
equipment for these systems will be of Swedish origin and we assume that
any embargo clearance necessary will be undertaken by the Swedish
manufacturer.

Yours/înă Untally

13/0

∙13/10

Slade

Encl'

6

Group Manacor, International Operations

MEMBER OF THE CABLE AND WIRELESS WORLDWIDE COMMUNICATIONS GROUP

1

1

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ULE

AUTHORITY No.

.Item Quantity

1

39,320 motrop

r

!

i

نيا

with status

Cháns Geanial Gable Project Simschung Geblo and Accessoriog

S.

tong Hot

Bang C

Description

+

2CX 1.2/4.hmm + 4/0.63 POL load covorød, black polythene protected cable
to P.0. specifications Loa.06215 and

G.130.

Kooical dzus longtho 615 motrea Maximum Grun

650

Eiznet drum lengtho to be advźood with owlos",

3,900 batros

acx 1.2%.hmm " 4/0.63 PCQ load cutored double stool tapo arapurad cabio
to P.0.

opacifications Hoa. CH215 and

Kominal drum longthe 615 metros Exsot drum lengths to bo advised with
order.

Epoxy-rogin tormination on 25 metro length of 20X 1.2/4.4ma + 4/0.63 201
lend skonthed Call cable, supplied with mating plugs for couzial and
Antoraciciul paar uocitova,

65 nota Jointing materials for otraight

through joints in Item 1

comprising lend aloovas, papoz

¡ pleeves, plumbaza moval, colder,

aår valves and all necessary Conaurable stereo,

20 catu Jointing materinia for otraigÂM

Chrudia Sointu an ¿tor 2

1

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compulslag Zoad aineves, Pasor alustu, plumbers woval, wolor, Hár Viavea
anu all nocensory ennourable stokon toganlur with

| protostivo Goâat caulsyn

Buż fake fur dimons buviri

1+

provli beg (Levia, Vithout Clo- hamilan.1, so ele valveo fAtcod to the
Zevul alusvea.

+

!

1 net Sunglah delusii Coal for

elke

02251

L

1

Day Tent condagsor

5Meria E3 wolt

1:3

Remarks

+

!

1

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1

·

SCHEDULE AUTHORITY No.

Item

Quantity

SCHEDULE OF MALARIALS

Hong Kong

Horr Fond

Chim Connial Cablo Project

Description

Shuzehung Cabio and AccomDories

Remarks

90

88m

loading ooilo, Uniooil

typo grado 1114? puitable for within-joint loading at

1,830 metro intervals in Itome 1 and 2.

ù 6 pota

Tochniaal Anotructiono for oablo installation, jointing, tormiunting and
footing.

Landlino boation,

Submarine and Transaiosion Dept.

Cable oni virolo00 Ltd.,

Horcury louau,

Theobaldo ilund,

LÀMOB NC1x BRY

GXT/Y/LL/WKJV/JU

20th September, 1972.

+

I

·

I

-

JULE

AUTHORITY No.

:

·

Item

Quantity

33

145

#

3

250

[:

6

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OF MATERIAL..

-

HLNG KONG GTIDA COAXIAL CABLE PROJECT ENUECHUN - KWANGCHIOZ
(CANT(B)_CABLE

AND JACULARES.

Description

+

2C% 1.2/5.4 um • 4/0.63 PEQ lond covered, binck polytliono protected
cable to P,0. Specification Non. Cu215 and

CV190.

Epoxy-rosin tormination on 25 ustro length of 2CX 1.2/4.4 ma " 4/0,63
run load phoathed tall cablo, supplied with mating plugs for coaxină and
intersticial pair oochoto,

F

I

Jointing materials for otraight-through joints in Itop i comprising lend
aloevod, parar oluevos, plumbero motul, solder, air valves and all
necessary consumatlo storos,

a sota Special Jointing tools for 2

ofcctrically bragod conductor Jointa in coaxial vairo for oporation from
a 12 volt ballory.

320

:

i

88ell loading collo, Unicoil typo grado 711AP suitable for 1 within
joint loading at 1,830 metro intervalo in Item 1.

6 Dots Technical Instructiono for

cablo installation, jointing, torminating and tostánge

Landline Seation

Submarine à Transmizaion Dept.,

Cable & Viroloso Ltdə s

Mercuży Houao,

:

Thoubalia Roud,

London RCIA ƐRA.

CXT/V/L: /MW/IC

-

4

Remarks

4

F

I

I

1

:

21st Soute ber 1972.

4

+

-

RESTRICTED

Enter

11/20

Mr Dav

Davies

Reference... MUA 4/301/1

[

(Far Eastern Dept K 248)

HONG KONG/CHINA AIR LINK

FEH

3/20/2

1. You asked me for a paragraph (for Mr Royle) on the present situation.
on the following.

You may care to draw

2. In May 1972 (his telegram No 394) the Governor of Hong Kong hoped
that the talks between BOAC and the Chinese authorities would not
militate against Hong kong proposals for an air link with Canton. In
August (his telegram No 735) he reminded us that CPA claimed the sole
rights for any direct service(s) between Hong Kong and China and
reported an indication of interest from Hong Kong Air International. Any
air service to China will have to be covered by an intergovernmental
agreement and when, in September, officials of the DTI met
representatives from the CAAC delegation to Farnborough they received
the firm impression that the Chinese wanted such an agreement. But,
while this meeting broke the ice and both aides a reed that draft texts
for an air services agreement should be exchanged, the Chinese indicated
that they were not then in a position to discuss details such as the
routes which might be exchanged (which would of course include the Hong
Kong interest).

3. The DTI, in consultation with ourselves, are preparing the draft of
an agreement for transmission to the Chinese in the near future, but we
cannot yet forecast a date when substantive negotiations will begin.

4 October 1972

T Boulton

Aviation & Telecommunications Department

G 64/1

RESTRICTED

DONTIE 156596 500M 2/70 GM 3643/2

C.S. 41A

2600077

20,070-10/71-894067

REF.

SCR 27/5701/72

CONFIDENTIAL

дро

R M Evans Esq F# 33012

FED

F C

My Icon Richarl

CABLE & WIRELESS

Entis a..

COLONIAL SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

19 September 1972

972

Mr Magne A+TD Jes by Dex,

A

(74)

No dimbt (+W love are in the picture.

~

mileage

Mr Charle Would your

tive be any modest

in this from a fobitel vewport?

(ie estholment of H.K.-Ch Atecommuncations

a

links).

The Clark 25/9

w 24/4.

R. E.27/9

4K and log! <

A&T and sen

Suart, the General Manager of Cable & Wireless,

wrote to me at the end of last week to say that, as foreseen in
paragraph 3 of Hong Kong telegram No. 582 of 28 June, he had just
learned that Su Shih-chieh, Deputy Director of the Kwangtung
Administration of Tele- communications, had accepted his invitation to
visit Hong Kong with some of his staff.

2.

They are due to arrive on 1 November for a stay of about seven days.
Suart thought the party would number about 12 but is still awaiting
details.

3.

This means of course that, according to present plans (S of S's telegram
to Peking No. 646 of 18 August) Su and his party will be in Hong Kong
during the S of S's

visit.

cra,

Yous

dick.

(RJ Stratton)

5 2014

FEE

сс

MH Morgan Esg PEKING

CONFIDENTIAL

With the compliments of

HONG KONG AND INDIAN OCEAN

DEPARTMENT

Ir Harvey day 2014

GIS-type informaton

Ga

2819

Apaya

FOREIGN AND COMMONWEALTH OFFICE

SW1A 2AH

|

1

·

South China Morning Post

Wednesday 16th August, 1972

Communist influence in Colony expands

Hongkong's communists are gradually but successfully increasing their
infiltra- tion into banking, trade and trade unions.

Since the 1967 disturbances, the communists have steadfastly been
concentrating on these three important sectors.

A recent survey into the growth of trades unions shows the increasing
grip that left- the wing leaders have on Hongkong labour force.

At the beginning of 1968, the communists claimed membership of 126,000
workers in leflist unions.

By July of this year, this number had increased to 150,000, ■ jump of
about 24,000 workers.

more

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