(504)
IMMEDIATE
CYPHER CAT A
FM SINGAPORE 060916Z
RESTRICTED
DESKBY FCO 061100Z
RESTRICTED
TO IMMEDIATE FCO TELNO 284 OF 6.9.78
HFR 184/1
sob
RECEIVED **! 950ISTRY NO. 51
1973
PA
REGISTRY Action Taken
DEK OFFICER
INDIEX
N
INFO IMMEDIATE HONG KONG (FOR GOVERNOR AND BCARFE)
FOR MAED FROM SMITH
MY TELEGRAM NO 280: UK/ SINGAPORE AIR SERVICES AGREEMENT
1. FOLLOWING THE RECENT CONCLUSION OF THE EXCHANGE OF NOTES THE SINGAPORE DEPARTMENT OF CIVIL AVIATION WILL BE ISSUING A PRESS
RELEASE ON THE AFTERNOON OF THURSDAY, 7 SEPTEMBER. THIS IS DESIGNED TO CATCH FIRDAY'S STRAITS TIMES BUT IT MAY BE PICKED UP BY THE NEWS
AGENCIES LATER TOMORROW.
2. THE RELEASE IS HEADED QUOTE SINGAPORE AND BRITAIN AGREE TO
MODIFY AIR SERVICES AGREEMENT UNQUOTE AND LEADS OFF WITH A REFERENCE TO THE RECENT SINGAPORE/USA AIR SERVICES AGREEMENT AS ONE
OF THE FIRST SIGNED UNDER THE NEW AMERICAN AVIATION POLICY WHICH
QUOTE EMPHASISES AMERICAN COMMITMENT TO LESS GOVERNMENTAL REGUL--
ATIONS, FREER COMPETITION AND LOWER FARES FOR BOTH SCHEDULED AND
CHARTER PASSENGER SERVICES AS WELL AS CARGO AIR SERVICES UNQUOTE.
3. AFTER ANNOUNCNING THAT NEXT YEAR SINGAPORE AIRLINES WILL BEGIN
ITS TRANS-PACIFIC PASSENGER SERVICES VIA HONG KONG TO HONOLULU AND SAN FRANCISCO, THE RELEASE THEN CONTINUES QUOTE SINCE SIA'S PASSENGER SERVICES TO HONOLULU AND SAN FRANCISCO ARE ROUTED THROUGH HONG KONG, DISCUSSIONS WITH THE BRITISH AUTHORITIES
WERE INITIATED LATE LAST YEAR. THEY WERE SUCCESSFULLY CONCLUDED IN
JUNE THIS YEAR. FOLLOWING THIS AGREEMENT, SINGAPORE AND THE UK LAST WEEK EXCHANGED DIPLOMATIC NOTES TO MODIFY THE EXISTING AIR SERVICES
AGREEMENT WHICH WAS SIGNED BY BOTH COUNTRIES SEVEN YEARS AGO. AS A
RESULT OF THIS REVISED AGREEMENT, SIA WILL BE ABLE TO MOUNT ITS
PASSENGER SERVICES TO AMERICA NEXT YEAR VIA HONG KONG. THIS WILL
BE IN ADDITION TO THE SIA CARGO SERVICES TO THE UNITED STATESN
PRESENTLY BEING OPEATED VIA HONG KONG, IN RETURN, CPA WILL BE GIVEN ADDITIONAL RIGHTS THROUGH NEW INTER-MEDIATE POINTS AND ONE POINT
BEYOND SINGAPORE. UNQUOTE.
RESTRICTED
14. THE