CONFIDENTIAL
3. ON THE OTHER HAND:-
(A) WE HAVE PREVIOUSLY CONTENDED THAT UNLESS OTHERWISE SPECIFIED, A FREQUENCY MEANS A B707 FREQUENCY. IF WE WERE TO ATTEMPT TO
RESTRICT THE USE OF MAS'S CAPACITY, OUR LEGAL POSITION WOULD
THEREFORE BE WEAK.
(B) THE FACT THAT CPA HAVE THE RIGHT TO OPERATE FOUR 3797'S ON
THIS ROUTE (ALTHOUGH THEY CURRENTLY OPERATE ONLY TWO) MAKES IT
DIFFICULT AS A MATTER OF EQUITY TO REFUSE THE MALAYSIAN REQUEST.
(C) MALAYSIAN RESENTMENTS OVER THE DC10 DEAL CENTRE AROUND THE
CONCESSIONS WE EXTRACTED ON CPA'S BEHALF.
(D) IN VIEW OF LAST WEEK'S DISCUSSION (PARA 1 ABOVE) I AM AFRAID THAT
THE FURTHER CLARIFICATION OF HONG KONG OBJECTIONS HAS COME TOO
LATE.
4. MY PERSONAL VIEW IS THAT IF WE WERE NOW TO ACCEPT THE PROPOSED
SUBSTITUTION OF 8707'S ON THIS ROUTE FOR B737' BUT TO ATTEMPT TO
RESTRICT THEIR CAPACITY, THE MALAYSIANS MIGHT WELL TAKE THIS AS
FURTHER EVIDENCE OF WHAT THEY CONSIDER TO BE OUR DESIRE TO HOLD
MAS DOWN: WHEREAS IF WE PERMIT THE SUBSTITUTION WITHOUT ATTACHING CONDITIONS (OF COURSE, WITHIN THE CONTEXT OF THE OVERALL SETTLEMENT NOW ENVISAGED) WE CAN QUOTE THIS AS EVIDENCE OF THE NEW SPIRIT WHICH WE HOPE WILL ANIMATE BOTH (RPT BOTH) SIDES IN
THE FORTHCOMING REVIEW. I BELIEVE THIS WOULD PAY OFF, NOT ONLY IN THE CONCORDE CONTEXT BUT ALSO IN OUR SUBSEQUENT REVIEW OF UK/
MALAYSIAN AIR SERVICE ARRANGEMENTS AS A WHOLE.
SMEDLEY
FILES:
MAED
SEAD
HK & G D MR BURROWS
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