HKK 184!
13 FER 1978
OFFICER
PP HONG KONG
INDEX
GPS 210
CYPHER CAT A
FM DTI 141802Z
RESTRICTED
80. 51
[Action Telen
HK
Jeels
NIR.
TO PRIORITY HONG KONG
TELNO ALLOT 36 OF 14 FEB 78
AND TO PRIORITY WELLINGTON (FOR ROGERS)
INFO WASHINGTON.
UK/US BILATERAL AIR SERVICES TALKS.
1. WE TOOK ADVANTAGE OF THE RESUMPTION OF BILATERAL CHARTER
TALKS AND FARES DISCUSSIONS ON 6 FEBRUARY TO TAKE UP WITH THE
AMERICANS THE QUESTION OF THE CURRENT SELLING RATE FOR AIR
TRANSPORT BETWEEN HONG KONG AND POINTS IN THE UNITED STATES. WE REFERRED TO PARAGRAPH (3) OF THE SECTION IN THE BOYD/
SHOVELTON EXCHANGE OF LETTERS OF 23 JULY 1977 DEALING WITH QUOTE
CURRENCY EXCHANGE RATES AND LOCAL SELLING PRICES UNQUOTE AND
ASKED WHAT THE AMERICANS WERE PROPOSING TO DO TO IMPLEMENT THEIR ENDN
OF THE BARGAIN SINCE WE HAD NOW MORE THAN MET OUR COMMITMENTS
IN RELATION TO UK SELLING PRICES ON THE NORTH ATLANTIC. NOT
UNEXPECTEDLY THEY HAD NO ANSWER TO GIVE AND WE HAVE FOLLOWED
THIS UP WITH A PERSONAL LETTER FROM SHOVELTON TO ATWOOD WHO HAS SUCCEEDED BILLER (COPY BY BAG).
2. WE ALSO REMINDED THE AMERICANS THAT WE WERE STILL WAITING
FOR NORTHWEST TO CEASE ADVERTISING AS THOUGH THEY HAD ALL-CARGO
RIGHTS BETWEEN HONG KONG AND TOKYO, SEOUL AND TAIPEI. THE AMERICANS FOR THEIR PART ASKED US ABOUT THE DIFFICULTIES WITH
FLYING TIGER AND WE SAID THAT WE HOPED THIS HAD NOW BEEN DEALT
WITH LOCALLY.
3. WE ARE MEETING THE AMERICANS AGAIN ON 6 MARCH. GRATEFUL IF YOU
WOULD LET US KNOW IN GOOD TIME IF THERE ARE ANY OTHER POINTS OR ANY ADDITIONAL POINTS ON THESE SUBJECTS YOU WOULD LIKE RAISED