CONFIDENTIAL
AKK 184/1
306
GRS 150
PRIORITY
CYPHER CAT/A
FM F C 0 021145Z
CONFIDENTIAL
AND
BY BAG.
INDEX
No
TO PRIORITY WASHINGTON TELEGRAM NO 1408 OF 2 JUNE INFO SAVING HONG KONG (FOR GOVERNOR AND BCARFE).
HONG KONG/U.S.A. AIR CARGO RATES.
FOLLOWING FOR CRUICKSHANK FROM BUSWELL (C A A).
5
IN 1978
RL
Acti
sy
iken
OFFI
See (486)
NTR 1. BY LETTER DATED 5 MAY, RECEIVED 8 MAY FLYING TIGER HAVE FILED
TO INCREASE CARGO RATES BY 12 PERCENT ON NORTH AND CENTRAL PACIFIC ROUTES BETWEEN HONG KONG AND U.S.A., PENDING INTRODUCTION OF AN OUTSTANDING I AT A AGREEMENT FOR THE AREA.
2. GRATEFUL IF YOU WOULD FORMALLY EXPRESS DISSATISFACTION IN THE USUAL WAY TO THE STATE DEPARTMENT. FOR YOUR INFORMATION, WE ARE TAKING THIS ACTION ON HONG KONG D C A'S ADVICE WHICH WE SUPPORT SINCE NO ECONOMIC JUSTIFICATION HAS BEEN OFFERED BY FT L. MOREOVER, THE SITUATION IS EXACERBATED BY THE PREVAILING PROBLEMS ON THE USE OF CURRENT EXCHANGE RATES FOR PRICING PURPOSES RECENTLY ANNOUNCED BY SINGAPORE AND MALAYSIA WHICH COULD RESULT IN A 17 PERCENT REDUCTION IN RATES FROM THOSE TWO COUNTRIES.
OWEN
FILES MARO
HKIGD SEAD
MISS BROWN
MR HURRAY
[COPIES SENT TO CAD[DOT]
CONFIDENTIAL