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RIGHTS FROM THE THAIS OR OTHERS BEYOND HONG KONG.

8. FURTHER CONSULTATIONS.

A FURTHER MEETING WOULD BE ARRANGED BETWEEN THE TWO DELEGATIONS WHEN THE BA/AC APPRAISAL WAS AVAILABLE, TO PICK UP ALL THE THREADS OF THE DISCUSSION ABOUT THE AIR SERVICES AGREEMENT. DESPITE PRESSURE FROM ROGERS, COLLINS WAS UNWILLING TO COMMIT HIMSELF TO A DATE. HE INDICATED TO ROGERS PRIVATELY THAT MUCH WOULD DEPEND UPON THE TIMING AND OUTCOME OF THE FEDERAL ELECTIONS IN CANADA WHICH WERE EXPECTED TO TAKE PLACE THIS SIUMMER.

9. THERE WAS ALSO A DISCUSSION ABOUT THE PROBLEM OF SASKATOON IT WAS LEFT THAT BRITISH AIRWAYS AND AIR CANADA WOULD SEE WHETHER THEY COULD COME TO AN AMICABLE AGREEMENT ON THE QUESTION OF THE FARES AND THAT THEY WOULD THEN FILE THEIR JOINT PROPOSAL IN THE USUAL WAY. HOWEVER, ROGERS MADE IT PLAIN, THAT IF THE FARE PUT FORWARD BY THE AIRLINES WAS LESS THAN THE CCF FARE BETWEEN LONDON AND WINNIPEG PLUS THE LOWEST DOMESTIC FARE BETWEEN WINNIPEG AND SASKATOON THIS WOULD RAISE POLICY QUESTIONS AND IT COULD NOT BE TAKEN FOR GRANTED THAT IT WOULD BE AUTOMATICALLY ACCEPTED. WE ASKED AIR CANADA TO ENSURE THAT THEIR ADVERTISING OF THIS SERVICE CONFORMED TO THE NORMALLY ACCEPTED PRACTICES AND ROGERS INDICATED THAT IF (AS NOW APPEARED) AIR CANADA WISHED TO SERVE SASKATOON BY A DIRECT SERVICE FROM LONDON, IT MIGHT BE MORE SENSIBLE

TO INCLUDE IT IN THE REVISED ROUTE SCHEDULE WHICH WAS EXPECTED TO EMERGE FROM THESE DISCUSSIONS.

10. IT WAS AGREED THAT BOTH SIDES WOULD TAKE A RESTRAINED LINE WITH THE PRESS INDICATING THAT THE TOPICS HAD BEEN THOROUGHLY

VENTILATED AND THAT THERE WERE TO BE FURTHER MEETINGS IN DUE COURSE. 11. WE MAINTAINED A FRIENDLY AND INFORMAL ATMOSPHERE THROUGHOUT. AT THE CONCLUSION COLLINS TOLD ROGERS PRIVATELY THAT THE CANADIANS HAD EXPECTED US TO ADOPT A MUCH MORE AGGRESSIVE LINE. A DETAILED

. REPORT FOLLOWS BY BAG.

OWEN

FILES

MAED

NAD

HRE GD

MR BURROWS

OPIES PASSED

SCOPIRS

CAD/DOT

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