GR 255
CYPHER/CAT A
FM HONG KONG 2310092
1
CONFIDENTIAL
CONFIDENTIAL
TO ROUTINE F.C.0 TELNO.776 OF 23 JUNE 78,
INFO HONG KONG GOVERNMENT OFFICE LONDON.
FOR C.A.A.
AIR CARGO RATES.
PA
H¥s༢༥//.
RECEIVEN S
2 6 JUN 1978
DESK OFFICER
INDEX
PA
355
MO. 51.
Actio Teken
No
1. A DELEGATION FROM FLYING TIGER LINE, LED BY NELSON (DIRECTOR PRICING AND TARIFFS), CALLED ON THE DCA ON 16 JUNE, PRINCIPALLY
TO SOUND OUT HONG KONG'S REACTION TOWARDS FTL'S FILING OF 5 MAY FOR A TWELVE PER CENT INCREASE IN CARGO RATES. THE REASONS FOR OUR OBJECTION WERE EXPLAINED (FCO TEL NO.1498 TO WASHINGTON).
2. NELSON ACCEPTED OUR POSITION, SAYING THAT FTL WERE ALL FOR THE ABOLITION OF THE IATA EXCHANGE RATE AND FOR CARGO TARIFFS TO BE QUOTED ONLY IN LOCAL CURRENCY, WITH NO REFERENCE AT ALL TO CUV'S: IN FACT, THEY HAD ACTED TO RESCIND THE IATA 021B RESOLUTION IN THE GENEVA CONFERENCE IN MAY.
喜
306
3. THE DELEGATION WERE CONCERNED WITH THE LOW YIELD ON THE TRANS-
PACIFIC ROUTE, STRESSING THAT ANY MOVE NOW TO REDUCE CARGO TARIFFS COULD EFFECTIVELY FORCE FTL TO SHIFT ITS EQUIPMENT ELSEWHERE, E.G KOREA AND JAPAN. AS REGARDS THE SWITCH TO BANKER'S RATE IN MALAYSIA AND SINGAPORE, THEY SAID THE ACTION TAKEN BY THE TWO GOVERNMENTS WAS NO MORE THAN RUBBER STAMPING A LONG STANDING PRACTICE (OR MALPRACTICE). IN PRACTICE THEREFORE
TARIFFS FOR AIR CARGO OUT OF THESE TWO COUNTRIES HAVE REMAINED
UNCHANGED.
CONFIDENTAL
14. IT WAS MADE