GR 255
PRIORITY
PHER/CAT A
CONFIDENTIAL
HKK 184/3
14 DEC
184/3.
110
KODEX
TOP COP
FM HONG KONG 120889 Z
No
CONFIDENTIAL
TO PRIORITY F.C.O TELNO.1253 OF 12 DECEMBER 77,
INFO PRIORITY JAKARTA, PORT MORESBY (FOR BCARFE)
FOR D.0.T.
YOUR TELNO. ALLOT 144 : U.K/INDONESIA AIR SERVICES.
1. THE BRIEFING MEETING HELD ON 9 DECEMBER CONSIDERED ALL RELEVANT FACTORS INCLUDING THE POINTS IN YOUR TEL UNDER REF. WE INTEND TO FOLLOW THE PRINCIPLE OF YOUR PARAGRAPH 6, WITH A GRADUATED APPROACH TO CAPACITY INCREASES BUT STARTING AT
A SOMEWHAT HIGHER LEVEL.
2. HAVING REGARD TO PREVIOUS AIRLINE DISCUSSIONS WITH WIWEKO AND THE HISTORY OF OUR AIR-SERVICES RELATIONS WITH INDONESIA, WE ARE WILLING TO ACCEPT ANY SLIGHT RISK IN ORDER TO OBTAIN SEVEN TRISTARS HKG/SIN/JKT V.V. PLUS THREE B707 HKG/KUL/JKT/PER V.V. FOR CPA, WHILE ALLOWING GARUDA FOUR DC-10 JKT/HKG V.V. AND THREE DC-10 DPS/HKG V.V. BCARFE WILL PRESS FOR A CAPACITY CONTROL MECHANISM TO BE WRITTEN INTO THE AIRLINE POOLING AGREEMENT (SUBJECT TO GOVERNMENTAL APPROVAL OF THAT AGREEMENT) TO CONTAIN FUTURE CAPACITY INCREASES. HOWEVER, WE FEEL THE INDONESIANS WILL PREFER TO SET DATES FOR SUCH INCREASES AND ARE LIKELY TO RESIST THIS PRESSURE.
3. SINCE THE TALKS ARE TO BE INFORMAL, THERE WILL ALMOST CERTAINLY BE TIME TO GIVE FURTHER CONSIDERATION TO THE IMPLICATIONS OF ANY BASIS OF AGREEMENT WHICH BCARFE MAY
BE ABLE TO ACHIEVE.
ROBERTS
FILES
HK.CO MAED SEAD
CONFIDENTIAL
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