GR 535

CYPHER/CAT A

CONFIDENTIAL

HKK 184/1

? JUN 1973

FM HONG KONG 220221Z

IN.

CONFIDENTIAL

No

TO ROUTINE F.C.O TELNO,764.OF 22 JUNE 78,

INFO HONG KONG GOVT CFFICE LONDON.

YOUR TELNO.450 : AIR SERVICES POLICY.

on Tøkken

м тилидек

She speak

бронем for are drafting

reply to be cleared in bywas PA

1. YOU SEEM TO HAVE SINGLED OUT THE HONG KONG-U.S.A ROUTES TO

SHOW THE SUCCESSFUL RESULTS OBTAINED BY THE U.K AND THE SOMEWHAT LESS SUCCESSFUL RESULTS OF SINGAPORE NEGOTIATING TEAM AND THE DIFFERENT ATTITUDES WHICH AFFECTED THE RESPECTIVE DEVELOPMENT OF

CPA AND SIA.

2. TAKING FIRST THE RESULTS: SURELY THIS IS PROOF POSITIVE OF

THE POINT THAT WE HAVE BEEN TRYING TO MAKE, NAMELY, THAT HONG KONG IS A FAR MORE VALUABLE BARGAINING COUNTER THAN SINGAPORE. IN THE NEGOTIATIONS, THE AMERICANS REFUSED TO CONCEDE TRAFFIC RIGHTS ELSEWHERE (E.G TRANS-ATLANTIC) TO BUY TRANS-PACIFIC RIGHTS TO HONG KONG FOR THEIR CARRIERS. THE PACIFIC ROUTES WERE THEREFORE DEALT WITH ESSENTIALLY AS A NEGOTIATION WITHIN

A NEGOTIATION, WITH HONG KONG STANDING ON ITS MERITS AS A SEPARATE ENTITY. THE BARGAIN STRUCK CLEARLY SHOWS THE TRUE VALUE OF HONG KONG TRAFFIC RIGHTS AND ONE SUPPOSES THAT THIS

HOLDS TRUE IN THE CASE OF SINGAPORE AS WELL.

!

3. YOU REFERRED TO A ROUTE BEING OBTAINED QUOTE FOR CATHAY PACIFIC UNQUOTE. THE HONG KONG REPRESENTATIVES TOOK PAINS TO EMPHASISE THROUGHOUT THE NEGOTIATIONS THAT THE TRANS-PACIFIC

ROUTES SOUGHT WERE FOR A BRITISH AIRLINE AND NOT NECESSARILY FOR CATHAY PACIFIC. THAT REMAINS OUR POSITION. B.A USED TO FLY ACROSS THE PACIFIC AND IF THEY SHOULD WISH TO DO SO AGAIN THEY WOULD BE MOST WELCOME. AS YOU ARE ALSO AWARE, TRANS- MERIDIAN HAD DISPLAYED SOME INTEREST IN AN ALL-CARGO OPERATION ACROSS THE PACIFIC. THE ROUTES ARE THEREFORE AVAILABLE TO ANY COMPETENT BRITISH CARRIER AND CATHAY PACIFIC ARE AWARE THAT THEY HAVE NO GROUNDS TO EXPECT THAT THE ROUTES WOULD BE PERMANENTLY RESERVED FOR THEM.

CONFIDENTIAL

74.

AS

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