170
CYPHER CAT A
CONFIDENTIAL
397
HKK 184|| PÅ
No
FM F C O 071837Z
CONFIDENTIAL
TO ROUTINE HONG KONG (GOVERNOR AND SCARFE) TELNO 529 OF 7 JULY.
(SAT
YOUR TELNO 702: U K/KOREA AIR SERVICES
Sae (403
1. WE HAD NOT APPRECIATED THAT CPA HAD GOT SO FAR AHEAD OF KAL IN EARNINGS. IN REPORTING TO D C A ON 27 APRIL 78 ON THE JANUARY 78 EARNINGS OUTCOME, C P A DESCRIDED AN IMPALANCE OF DOLLARS C POINT 9 MILLION IN THEIR FAVOUR AS BEING QUOTE ABNORMALLY HIGH UNQUOTE. ARE YOU SAYING THAT DOLLARS 1 POINT 5 MILLION PER MONTH IMBALANCE NOW REPRESENTS THE NORM? IF SO, CRATEFUL TO KNOW WHAT IN PARTICULAR IS THE CAUSE.
2. SINCE THERE APPEARS TO BE LACK OF UNANIMITY CONCERNING THE PROBABLE EFFECTS ON OUR CARRIERS OF GRANTING K A L THE CONCESSION, WE HAVE ASKED THE TRI-PARTITE STUDY TEAM ON GULF- HONG KONG TRAFFIC TO TAKE IT INTO CONSIDERATION. WE PROPOSE · TO RE-CONSIDER THE KA L REQUEST IN THE LIGHT OF THE STUDY TEAM'S
REPORT.
OWEN
[COPIES SENT TO CAD/DOT]
FILES
MAED
HK & GD
FED
MED
MISS BROWN
MR.MURRAY
MR.WEIR
CONFIDENTIAL