CONFIDENTIAL,
IN THE CRIENT. THEY WERE ALSO VERY RELUCTANT TO CONCEDE EVEN COM-
BINATION RIGHTS AT SEATTLE SINCE THEY FEARED THAT CPA WOULD
THEN CARRY TOKYO-VANCOUVER TRAFFIC TO SEATTLE THUS OBTAINING IN
EFFECT FIFTH FREEDOM RIGHTS. ON THE OTHER HAND THEY WERE WILLING
TO CONCEDE FIFTH FREEDOM RIGHTS TO LOS ANGELES AND SAN FRANSISCO
AND COMBINATION RIGHTS AT SEOUL, JAPAN AND HONOLULU. UNFORTUNATELY, NONE OF THESE FITS IN WITH CPA'S CURRENT ROUTE PLANNING.
7.
WITH THE CONCURRENCE OF LATHAM AND MACCARTHUR, ROGERS THEREFORE SAID THAT UNLESS A WIDER EXCHANGE ON A REASONABLY BALANCED BASIS COULD BE AGREED, WE MIGHT NEED TO FALL BACK ON A SIMPLE EXCHANGE OF END-TO-END THIRD/FOURTH FREEDOM RIGHTS. THE FIGURES INDICATED THAT EVEN THIS WOULD SUPPORT TWO B747 SERVICES BY EACH AIRLINE
IN 1980 ON A PROFITABLE BASIS. HOWEVER HE HOPED IT WOULD BE POSSIBLE TO AGREE SOME ADDITIONAL RIGHTS ON BOTH SIDES TO INTRODUCE SUPPORTING FLOWS OF TRAFFIC. HE INDICATED THAT THE LEAST WE WOULD BE LOOKING FOR UNDER SUCH AN ARRANGEMENT WOULD BE THE ABILITY TO COMBINE SEATTLE WITH VANCOUVER.
3. THE CANADIANS WERE TAKEN ABACK BY THIS AND SAID THEY WOULD NEED MORE TIME TO CONSIDER THE VARIOUS POSSIBILITIES. ROGERS AGREED TO THIS BUT PUT UP A MARKER THAT CANADIAN PACIFIC'S CAPACITY SHOULD REMAIN AT THE CURRENT LEVEL UNTIL AGREEMENT WAS REACHED.
9. AT COLLINS' SUGGESTION, THE LINE TO BE TAKEN BY BOTH SIDES IN DEALING WITH ENQUIRIES FROM THE PRESS (MY TELMO 634)
WAS AGREED.
15. AS REGARDS THE DATE OF THE NEXT ROUND, COLLINS SAID IT WOULD TAKE HIS TEAM SEVERAL WEEKS TO REVIEW THEIR POSITION ON BOTH THE
ATLANTIC AND PACIFIC ROUTES. THE UK TEAM FELT THIS WAS GENUINE
AND THAT THE CANADIANS WERE NOT PLAYING FOR TIME. IN VIEW OF THE
EXISTING COMMITMENTS OF BOTH TEAMS IT WAS AGREED THAT THE
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/ EARLIEST