لو
CONFIDENTIAL
g A
ag B
Hong Kong. A Confidential Memorandum of Understanding of 1966 states that the Malaysian Government would issue a temporary permit authorising CPA additionally to exercise traffic rights between Jesselton and Manila but that the rights would lapse when Malaysia-Singapore Airlines began services on the sector. The Memorandum also authorises Malaysia-Singapore Airlines to call at additional points and exercise traffic rights on other sectors provided a satisfactory commercial arrangement had been negotiated between CPA and MSA. The Malaysian Government undertook to make similar concessions to CPA but nothing in the Memorandum imposed any obligation on CPA or MSA to enter into commercial negotiations. CPA have accepted that they will not be permitted to operate between Jesselton and Manila when MSA are ready to operate the service themselves.
4. Cathay Pacific were most critical of the outcome of the U.K./Malaysia and U.K./Singapore Air Services Agreements negotiated in 1966 which more or less forze CPA's operations south of Hong Kong while allowing Malaysian Airways full scope
Very recently for expansion both south and north of Hong Kong. Hong Kong have represented that Malaysian Airways, who have just bought new aircraft, have established very profitable services north of Hong Kong which they would be very reluctant to stop and that the present time would be suitable for the U.K. to
The U.K. renegotiate the agreements to the advantage of CPA. view is that whilst the Malaysians and Singaporeans cut down severely on the traffic rights wanted for British airlines we got as much as possible. Hong Kong cannot expect reciprocity with MSA because BOAC also operate routes through Malaysia.
/CPA.
i.
:
CONFIDENTIAL