GPS 470
CYPHER CAT A
FM FCO 091613Z
CONFIDENTIAL
CONFIDENTIAL
HKK184/1 A
**M! 1978
INDEX
No
See Bll
TO ROUTINE HONG KONG (COVERNOR AND BCARFE) TEL NO 450 OF 9 JUNE.
YOUR TEL. NO 611: AIR SERVICES POLICY.
1. WE WERE INTERESTED TO RECEIVE THE FIGURES IN PARA 3 OF YOUR
TELEGRAM UNDER REFERENCE, WHICH APPEAR TO SHOW THAT ALTHOUGH THE POPULATION OF HONG KONG IS DOUBLE THAT OF SINGAPORE, THE TWO POINTS ARE VERY SIMILAR IN AIR SERVICES TERMS, WITH THE NUMBER OF PASSENGERS, NUMBER OF VISITORS AND TONNAGE SOMEWHAT HIGHER AT HONG KONG BUT THE NUMBER OF AIRCRAFT MOVEMENTS SOMEWHAT LOVER.
2. HOWEVER, WE ARE DOUBTFUL WHETHER, EVEN IF ALLOWANCE IS INCLUDED FOR BA'S EARNINGS ON ROUTES TO AND FROM HONG KONG, THE FIGURES IN
YOUR PARA 2 PROVIDE AN INDEX OF OUR SUCCESS IN OBTAINING RIGHTS
FOR BRITISH CARRIERS BY COMPARISON WITH THOSE SECURED BY
SINGAPORE FOR SIA. OTHER FACTORS WHICH AFFECT THE BALANCE OF
EARNINGS INCLUDE THE WILLINGNESS OF THE AIRLINES TO TAKE RISKS
AND THE DEGREE OF FINANCIAL SUPPORT AVAILABLE FROM THEIR GOVERNMENTS.
•
3. THE DIFFERENT RESULTS OF THE NEGOTIATING TEAMS, AND DIFFERENT
ATTITUDES OF THE AIRLINES, SHOW UP MOST CLEARLY OVER THE RESPECTIVE ROUTES TO THE UNITED STATES. LEAVING ASIDE THE ROUND-THE-WORLD SERVICE WHICH YOU WERE ANXIOUS TO MAINTAIN FOR OTHER REASONS, WE MADE FAR FEWER CONCESSIONS TO THE UNITED STATES THAN THE SINGAPOREANS, IN RESPECT OF BOTH SCHEDULED AND NON-SCHEDULED SERVICES. ON THE OTHER SIDE OF THE COIN, VE OBTAINED A ROUTE FOR CATHAY PACIFIC TO ALL THREE MAJOR POINTS ON THE US WEST COAST, WITH FIFTH FREEDOM RIGHTS FOR A DAILY SERVICE FROM JAPAN, WHILE THE SINGAPOREANS WERE ABLE TO GET ONLY SAN FRANCISCO, WITH ONLY THREE SERVICES A WEEK (RISING TO ONLY FIVE IN TWO YEARS' TIME) AND WITHOUT THE ABILITY TO OPERATE THROUGH JAPAN.
CONFIDENTIAL
/4.IN SPITE OF
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