CONFIDENTIAL
enterta
179
:
GR 235
IMMEDIATE
CYPHER CAT A
FM HONG KONG 230944Z
CONFIDENTIAL
No
2 8 MAR 1978
82
TO IMMEDIATE F C O TELNO 369 OF 23 MARCH 1978
INFO WASHINGTON, HONG KONG COVERNMENT OFFICE LONDON.
FOR CAA.
AIR CARGO RATES.
f
See 1187
226
REFERENCE THE LIMITED AGREEMENT REACHED AT THE RECONVENED NORTH AND CENTRAL PACIFIC CARGO CONFERENCE HELD AT SAN DIEGO ON
30 JANUARY 1978.
2. WE HAVE STUDIED PROPOSED INCREASES AND FOUND THEM UNACCEPTABLE.
YOU WILL BE AWARE FROM PERVIOUS TELEGRAMS AND DISCUSSION WITH CAA OFFICIALS THAT WE ARE PREPARED TO ACCEPT REASONABLE INCREASES SUPPORTED BY ECONOMIC JUSTIFICATION, YOU WILL ALSO KNOW OF THE IMPORTANCE WE ATTACH TO CONTAINER RATE ITEM 9902 REMAINING IN EFFECT, WHICH COVERS ABOUT 40 PERCENT OF THE CARGO SHIPPED FROM HONG KONG TO THE UNITED STATES. THE PRESENT PACKAGE PROPOSES A MASSIVE AND DISPROPORTIONATE INCREASE OF BETWEEN 24 TO 29 PERCENT FOR THIS ITEM AND, MOREOVER, WE UNDERSTAND IT IS PROPOSED
TO DELETE THE ITEM ALTOGETHER FROM JULY 1978, LEAVING ONLY MUCH HIGHER RATES IN THE TARIFF.
3. FURTHERMORE, THE PACKAGE DOES NOT SEEK TO REMEDY THE PROBLEM OVER ARTIFICIAL EXCHANGE RATES WHICH GOVERNMENT, SHIPPERS AND AGENTS ALIKE IN HONG KONG HAVE BEEN PRESSING FOR.
CONFIDENTIAL
/4.IT WOULD