GPS 210 CYPHER/CAT A PRIORITY
FCO 131700Z
CONFIDENTIAL
CONFIDENTAL
HKK @184/1
R..PA-
14 JUN 1978
331
RE
INDEX
PA
Action Taken
TO PRIORITY HONG KONG (GOVERNOR AND BCARFE) TELNU
INFO PRIORITY BERNE
$9-0F 13
JUNG
YOUR TELNO 697: UK/SWITZERLAND AIR SERVICES TALKS
1. AS STATED IN PARA 4 OF OUR TELNO 433, WE ARE WILLING TO CONSIDER ALTERNATIVE COURSES TO CUTTING BACK SWISSAIR'S SERVICES. IF, AS A RESULT OF THE PROJECTED BA/SR TALKS REPORTED IN BERNE TELNO 42, SUBSTANTIAL PROGRESS TOWARDS ELIMINATING THE IMBALANCE CAN BE MADE IN OTHER AIR SERVICES AREAS WE WOULD BE READY TO CONSIDER ALLOWING SR SERVICES TO HONG KONG TO CONTINUE AT THEIR PRESENT LEVEL. THE RECENT UK/FRG AIR SERVICES NEGOTIATIONS ARE A PRECEDENT. HOWEVER, IF THERE IS NO REDUCTION IN SR SERVICES, THE PROSPECT OF AGREEING A SERVICE FROM COPENHAGEN (WHICH IN ANY EVENT LOOKS UNPROMISING GIVEN THE ESTIMATED LOAD FACTORS QUOTED IN PARA 11 OF OSLO TELNO 134) WILL LOOK BLEAK.
2. PARA 2 OF YOUR TELEGRAM UNDER REFERENCE. AS WE HAVE EXPLAINED IN THE PAST, WE BELIEVE OUR TREATMENT OF BA AND CPA TO HAVE BEEN EVEN-HANDED AND WE SEE NOTHING TO BE GAINED FROM CONTINUING TO DEBATE THE POINT.
3. WE RECOGNISE THAT ANY NEGOTIATIONS WITH THE SWISS ON TEXTILES WOULD BE FOR HONG KONG TO UNDERTAKE. WE WOULD EXPECT HOWEVER THAT
BE IN A STRONG IN ANY SUCH NEGOTIATIONS, THE NEGOTIATORS WOULD POSITION IN VIEW OF THE GREAT DISPARITY OF EARNINGS WHICH THE FIGURES IN YOUR TELNO 658 DISPLAYED.
OWEN
FILES
MAFO
HREGD
WED
MISS BROWN
MR MURRAY
MR FERGUSSON
COPIES SENT
CAD/DOT
CONFIDÉNMAL