197)
CUNE
MIDEN
GPS 500
PRIORITY
CYPHE CAT A
FM FCQ 171840Z
CONFIDENTIAL.
218
HKK 184/1
1 CAD 1973
lak
TO PRIORITY HONG KONG (GOVERNOR AND BCARFE) TEL NO 309 OF 17 APRIL.
INFO SEOUL.
YOUR TEL NO 446: UK/KOREA AIR SERVICES.
See laul
1. THE GRANTING OR WITHHOLDING OF TRAFFIC RIGHTS DOES NOT ONLY DEPEND ON THE ATTITUDE OF OUR AIRLINES, BA IS PROBABLY AS RELAXED AS YOU SAY CPA IS ON THIS ISSUE. THERE IS AN IMPORTANT QUESTION OF PRINCIPLE INVOLVED IN GRANTING TRAFFIC RIGHTS, ALBEIT OWN STOP-OVER ONLY, TO AN AIRLINE ON A ROUTE THAT DOES NOT EXIST IN THE RELEVANT BILATERAL AGREEMENT. IT CONCERNS US AS MUCH IF NOT MORE THAN THE
ATTITUDES OF OUR TWO AIRLINES.
2. WE DO NOT BELIEVE THAT KAL IS SEEKING THIS CONCESSION OUT OF SOLICITUDE FOR THE KOREAN WORKERS WHICH IT CLAIMS ARE CAPTIVE TO IT FOR THEIR RETURN JOURNEY FROM JEDDA TO SEOUL. WE DOUBT WHETHER IN PRACTICE IT WOULD BE POSSIBLE FOR YOU IN HONG KONG TO ASCERTAIN WHETHER THOSE STOPPING OVER WERE IN FACT CAPTIVE. THAT BEING SO, IT MUST MEAN THAT IN PRACTICE KAL WOULD GET OWN STOP-OVER IN HONG KONG FOR ALL ITS JEDDA ORIGINATING TRAFFIC ON THE TWO SERVICES. FURTHERMORE, JUDGING BY THE REMARKS IN PARA 5 OF YOUR TEL NO 423, YOU ENVISAGE AT LEAST THE POSSIBILITY THAT KAL WOULD CHEAT ON ITS BAHRAIN ORIGINATING TRAFFIC. ALL IN ALL WE ARE NOT CONVINCED THAT THE GRANT OF THE CONCESSION TO KAL WILL NOT SERIOUSLY AFFECT, PARTICULARLY IN THE LONGER TERM, THE KOREA-MIDDLE EAST AND VV TRAFFIC WHICH CPA AND BA EXPECT TO GET.
3. WITH THE THREAT OF WITHDRAWAL OF THE CONCESSION HANGING OVER THEM IN THE EVENT OF THEIR CHEATING, IT IS QUITE ON THE CARDS THAT KAL WOULD NOT CHEAT, CERTAINLY NOT IN ANY OBVIOUS WAY, DURING THE TRIAL PERIOD. BUT THIS WOULD NOT NECESSARILY MEAN THERE WOULD BE NO DECLINE IN CPA'S AND BA'S GULF-HONG KONG TRAFFIC. TO WITHDRAW THE CONCESSION IN THE EVENT THAT THERE WAS SUCH DECLINE BUT NO DETECTED CHEATING WOULD IN OUR VIEW BE MORE PROVOCATIVE THAN WITHHOLDING THE CONCESSION IN THE FIRST PLACE.
CONFIDEN
CAITIAL
4. TO HELP