ca
IMMEDIATE
Gr
450
CYPHER CAT A
FM WELLINGTON 2100052
CONFIDENTIAL
CONFIDENTIAL
HKK 184/1...
2? FFR 1978
INDEX
PA
REGISTRY Action Take
ملة
103
See (104) (110
TO IMMEDIATE FCO TELNO 045 OF 21 FEBRUARY
INFO IMMEDIATE HONG KONG (FOR GOVERNOR AND BCARFE) AND KUALA LUMPUR
FOLLOWING FROM ROGERS
HONG KONG TELNO 191: UK/MALAYSIA AIR SERVICES
1. THE ARRIVAL OF TUR AT SUCH A LATE STAGE PRESENTS US WITH AN
*
AWKWARD SITUATION. DURING MY VISIT TO KUALA LUMPUR EARLY LAST WEEK,
IN THE COURSE OF DISCUSSIONS WITH MALAYSIAN OFFICIALS I REFERRED
IN PASSING TO MAS'S PROPOSAL TO SUBSTITUTE THREE B707'S FOR
THREE B737'S ON THE KOTA KINABALU-HONG KONG ROUTE, AND INSTANCED THIS AS AN ISSUE OVER WHICH, HAD OUR RELATIONS BEEN BETTER, WE
WOULD PROBABLY HAVE MADE NO BONES. TAKEN IN CONJUNCTION WITH MY
PROPOSALS FOR A FULL-SCALE REVIEW OF OUR AIR SERVICES RELATIONS AND FOR MAKING A FRESH START, THE MALAYSIANS PROBABLY TOOK THIS
AS A HINT THAT IF AN OVERALL POLITICAL SETTLEMENT COULD BE REACHED WE WOULD ACCEDE TO THEIR WISHES ON THIS RELATIVELY MINOR
ISSUE.
2. FOLLOWING RECEIPT OF TUR I HAVE TAKEN ADVANTAGE OF THE PRESENCE
OF LATHAM, MILES AND MCARTHUR HERE TO GO OVER THE GROUND FULLY WITH THEM. IN THE LIGHT OF TUR AND THIS DISCUSSION I ACCEPT THAT
THE SUBSTITUTION OF LARGER FOR SMALLER AIRCRAFT ON THIS ROUTE BY
MAS, WITHOUT SEAT LIMITATION, WOULD DAMAGE CPA AND COULD EVEN RENDER THEIR ALREADY SHAKY SERVICE UNVIABLE. IF CPA WERE
OBLIGED TO WITHDRAW THEIR SERVICE TO KOTA KINABALU AT THIS STAGE, FOR ECONOMIC REASONS, NOT ONLY WOULD IT HAVE REPERCUSSIONS ON THEIR SERVICE TO BRUNE! BUT IT WOULD ALSO WEAKEN OUR NEGOTIATING
POSITION IN THE FORTHCOMING REVIEW WITH MALAYSIA.
CONFIDENTIAL
/ 3. ON THE