PP MANILA
AR 426
CONFIDENTIAL
FM HONG KONG 161813Z JAN 79
PA JIK! HKKIBull
37
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HKK184/1 EDIATE
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ANNOWE SHOPOT.
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELNO.111 OF 16 JANUARY,
COPY
1671
INFO PRIORITY MANILA,
Hr Williamsm (MAE)
719
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You YOUR TELNO.155 OF 5 DECEMBER : U.K/PHILIPPINES AIR SERVICES. ~
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1. WE HAVE NOT RECEIVED COPIES OF PHILIPPINE EMBASSY NOTE OF
16 NOVEMBER AND YOUR REPLY AND DO NOT THEREFORE KNOW WHAT THE AGENDA FOR THE TALKS WILL BE. WE HAD ASSUMED THAT DISCUSSIONS
WOULD BE CONFINED TO U.K/P.I TRUNK ROUTE MATTERS WITHOUT
TOUCHING ON HONG KONG INTERESTS. HOWEVER,
HOWEVER, CPA HAVE NOW RAISED MATTERS WHICH THEY WOULD WISH TO BE TAKEN INTO ACCOUNT.
2. IT IS POSSIBLE THAT THE PHILIPPINE SIDE WILL BRING UP THE
QUESTION OF A ROUTE MNL-POM-MNL FOR CPA SINCE THE CPA PETITION
FOR SUCH A ROUTE WAS DENIED BY THE PCAB ON THE GROUNDS THAT QUOTE THE SAID ROUTE UNDERTAKING IS SUBJECT TO INTER-COMPANY UNDERSTANDINGS AND COMMERCIAL AGREEMENT BETWEEN PHILIPPINE AIRLINES AND CPA, AND CONSIDERING FURTHER THAT DISCUSSIONS ARE STILL PENDING ON THE RP-BRITISH AIR RELATIONS/AGREEMENT UNQUOTE (RESOLUTION ADOPTED IN THE 7TH REGULAR MEETING OF THE CAB HELD ON 27 JULY 1978).
3. THE POSITION NOW IS THAT CPA OPERATE SERVICES HKG-POM DIRECT
AND HAVE NO WISH TO PURSUE THE REQUIREMENT TO OPERATE VIA MNL. NEVERTHELESS, YOU MAY WISH TO TAKE THE PCAB TO TASK AT THE TALKS
FOR THE DENIAL OF A RIGHT WHICH IS PROVIDED FOR UNDER THE TERMS.
OF THE AIR SERVICES ARRANGEMENTS.
4. HOWEVER, CPA DO HAVE OTHER OBJECTIVES WHICH WE FEEL SHOULD BE RAISED AT THE TALKS. THERE IS AN INCREASING DEMAND FOR DIRECT AIR SERVICES BETWEEN HONG KONG AND CEBU WHICH AT PRESENT CAN ONLY BE SERVED ON A CHARTER BASIS. WE WOULD PROPOSE THAT OPPORTUNITY BE TAKEN TO INCLUDE IT IN THE ROUTE SCHEDULE ON A RECIPROCAL BASIS
5. ADDITIONALLY, CPA ARE FINDING THAT PAL ARE ADOPTING A DOG-IN- THE-MANGER ATTITUDE TOWARDS PROPOSALS TO INCREASE CAPACITY TO