गतप
GF 5
PR ITY
CYPHER CAT A
FM HONG KONG 260935Z
CONFIDENTIAL
CONFIDENTIAL
fA
HKK 184|!
LILK
25 JAN 1978
OFALUR
PA
As as
TO PRIORITY F C O TELNO 112 OF 26 JANUARY 1978
10. 51
ESISTRY
Taken
of
See 52
47
INFO OTTAWA,
FOR DO T.
YOUR ALLOT 156 OF 23 DECEMBER 1977: UK/CANADA AIR SERVICES.
NIR
THE PROPOSALS CONTAINED IN THE CPA LETTER OF 22 NOVEMBER 1974 WERE VALUELESS AS THEY WERE BASED ON A MISUNDERSTANDING OF THE UK/CANADA AIR SERVICES ARRANGEMENTS. WE HAVE PROVIDED CPA WITH COPIES OF THE RELEVANT AGREEMENTS AND EXCHANGES OF NOTES AND ASKED THAT THEY REVIEW THEIR POSITION. OUR UNDERSTANDING IS THAT THESE
DOCUMENTS PROVIDE FOR MULTIPLE DESIGNATION, A UK ROUTE BETWEEN HONG KONG AND LONDON VIA CANADA (UK ROUTE 5) WHICH MAY BE
OPERATED IN BOTH DIRECTIONS AND A STANDARD BERMUDA 1 TYPE CAPACITY
CLAUSE.
2. ON ROUTES, CPA ASK THAT UK ROUTE 5 SHOULD BE AMENDED TO INCLUDE
VANCOUVER AS A DESTINATION IN CANADIAN TERRITORY AND SAN FRANCISCO
AND/OR LOS ANGELES AS POINTS BEYOND. CERTAINLY THE CURRENT POINTS
OF EITHER CHURCHILL OR THE PAS ARE USELESS AND WE THEREFORE SUPPORT
THE CPA OBJECTIVE. BUT WE WOULD GO FURTHER AND, AT LEAST AS AN OPENING BID, ASK FOR VANCOUVER, EDMONTON AND TORONTO (TO MIRROR THE POINTS AVAILABLE TO THE CANADIAN DESIGNATED AIRLINE). IT WOULD CERTAINLY SEEM SENSIBLE TO SECURE SAN FRANCISCO AND/OR LOS ANGELES WHICH, TOGETHER WITH VANCOUVER, WOULD COMPLEMENT THE RIGHTS OBTAINED
UNDER BERMUDA 2. THE DIFFICULTY HERE IS THAT THE CANADIANS WOULD
BE BOUND TO ASK FOR BALANCED RIGHTS BEYOND HONG KONG. SOMETHING
MIGHT HAVE TO BE CONCEDED BUT THE EXERCISE OF SUCH RIGHTS COULD BE CONDITIONAL ON BOTH SIDES WISHING TO OPERATE TO BEYOND POINTS.
CONFIDENTIAL
/3.AS TO CAPACITY