RESTRICTED

Foreign and Commonwealth Office London SW1A 2AH

HKK 184/1

RALAN S

Telephone 01-

RO.

Your reference

Our reference

1

Date

PA দ

(6535)

MRA 184/320/1

8 September 1978

PGF Bryant Esq CAIR

Department of Trade

1 Victoria Street

London

SW1

SK OFFICER

PA

INDEX

RE

on Teken

UK/PHILIPPINES AIR SERVICES

I"

Mr Syjuco, the Deputy Chief of Mission at the Philippine Embassy called this morning and left with me a note (copy enclosed) stating that "the designated airline of the Government of the Republic of the Philippines desires to commence operations between Manila and London".

2.

Mr Syjuco, in answer to my question, confirmed that the "designated airline" is PAL. I expressed my surprise at the amount of initial capacity (3 x DC10 or 747 per week) mentioned in the note, pointing out that if BA were to mount a reciprocal service, this could mean 6 weekly services to Manila with wide bodied aircraft. I also thought that we would have to discuss 5th freedoms in some depth. Mr Syjuco professed no knowledge of "airline matters".

I told him

3. He asked how long it would take to get a permit to begin services. that this was not a question we (FCO) could answer, and emphasised that first and foremost you (DOT) would need to consider the Philipino note in conjunction with the other interested parties on the UK side ie CAA, BA, CPA, Hong Kong Government, FCO. Once you had reached a UK consensus, we would probably call for intergovernmental

I doubted very much that PAL talks, to take place either in London or Manila.

He did not seem could begin services before early to mid-1979 at the earliest. upset by this news.

4. Mr Syjuco asked what the relationship was between BA and CPA (he thought that they were both state airlines). I told him that I was not aware of any formal relationship, but that I knew that they had frequent informal contacts, pointing out that CPA is a private company.

!

I said 5. I asked Mr Syjuco which airport PAL intended using. He did not know. that under the terms of the London Airports' Policy, I doubted whether PAL would not be allowed access to Heathrow, and promised to let him have same material of the Airports' Policy in general, and Gatwick in particular.

c.c. to:-

Miss Bull, SEAD Mr Thompson, HK&GD

RESTRICTED

G Hall

Maritime, Aviation & Environment Department

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