CONFIDENTIAL
GRS 220
CHMEDIATE
IPHER CAT A.
FM FC 0 141880Z
CONFIDENTIAL
TO IMMEDIATE HONG KONG TELNO 462 OF 14 JUNE.
HKRA 184/1.
No
OUR TELNO 302 TO CANBERRA: UK/AUSTRALIA AIR SERVICES
૪] I
STRY'MO. 51
15 JUN 1978
OFFICER
PA
REGISTRY Action Taken
See 339) 407
1. WE HAVE DISCUSSED WITH THE AUSTRALIANS THE IMPLICATIONS OF
THE PROPOSALS OUTLINED IN TELEGRAM UNDER REFERENCE FOR AUSTRALIA-
HONG KONG SERVICES.
2. SO FAR AS E. AUSTRALIA-HONG KONG SERVICES ARE CONCERNED WE
CONSIDER THAT THE EFFECTS ON CPA, IF ANY, WOULD BE BENEFICIAL.
QANTAS WOULD CEASE TO OPERATE VIA MANILA AND IN CONSEQUENCE
WOULD ALMOST CERTAINLY REDUCE THEIR FREQUENCIES TO HONG KONG:
4 X 747 PER WEEK WAS MENTIONED AS A POSSIBILITY. UNTIL, THEREFORE,
CPA CONVERT TO A WHOLLY 747 SERVICE ON THIS ROUTE, THEY WOULD
HAVE A FREQUENCY ADVANTAGE WHILE RETAINING THEIR ENTITLEMENT TO
MATCHING CAPACITY.
3. ON THE HONG KONG W. AUSTRALIA ROUTE, CPA WOULD LOSE THEIR INTERMEDIATE FIFTH FREEDOM RIGHTS. THE AUSTRALIANS ESTIMATED
THAT THERE WAS PROBABLY ENOUGH END-TO-END TRAFFIC TO JUSTIFY TWO X 707 SERVICES PER WEEK. AT THE APPROPRIATE TIME CPA WOULD
HAVE TO CONSIDER WHETHER THE ROUTE WAS A VIABLE PROPOSITION ON
THIS BASIS.
4. IN ORDER TO CONSIDER HOW BEST TO REACT TO THE AUSTRALIAN PROPOSALS, WE WOULD BE GRATEFUL FOR YOUR PRELIMINARY REACTIONS TO THEM DESKBY 16880ØZ. SINCE OUR EXCHANGES WITH THE AUSTRALIANS
TEAM ARE ON A PRIVILEGED GOVERNMENT TO GOVERNMENT BASIS WOULD
YOU PLEASE NOT DISCUSS THIS WITH CPA, FOR THE TIME BEING.
OWEN
FILES
MARD SWPD SEAD HKIGA
NAD MED DEF. D.
PLANNING.
PS.
PS|MRJUDD
PS/ LORD GORONWY ROBERTS
PS/PUS SIR. A.Buff MR BUTLER MR CORTAZZI, MISS BROWN MR WEIR
MR HURRAY.
CONFIDENTIAL
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