$ 400
CONFIDENTIAL
35
CONFIDENTIAL
HKKI 84/4 NO. 5.1
PA
·A
FM KUALA LUMPUR 150045Z JAN 79
TO PRIORITY FCO
TELEGRAM NUMER 31 OF 15 JANUARY 1979
INFO PRIORITY SINGAPORE
PA
Meter Tukon
ль
New
INFO ROUTINE BCARFE AND GOV HONG KONG JAKARTA BANGKOK CANBERRA
AND WELLINGTON
See (43
MY TEL NO 1 (NOT TO ALL) : UK/MALAYSIA AIR SERVICES
1. WILLIAMS SPOKE TO HAMZAH MAJID (DIRECTOR GENERAL CIVIL AVIATION) ON SATURD H SOON AFTER THE LATTER'S RETURN FROM AUSTRALIA. HAMZAH WAS PLEASED THAT THE NEXT ROUND OF OUR DISCUSSIONS WOULD BE ABLE TO START ON 5 FEBRUARY AND PROPOSED THAT TALKS COMMENCE AT 1030 HOURS EACH DAY. WE TOLD HIM THAT ROGERS AND BCARFE WOULD BE HERE PLUS A LARGE TEAM FROM BRITISH AIRWAYS. HE SEEMED CUITE SATISFIED WITH THIS. WE ADDED THAT WE EXPECTED REPRESENTATION FROM HONG KONG BUT DID NOT YET KNOW WHO WOULD COME.
2. HAMZAH EXPRESSED SOME ANXIETY ABOUT THE FUTURE IN THE LIGHT OF ICAP. IN PARTICULAR HE SAID HE WAS CONCERNED THAT SECTOR FARES SHOULD NOT RPR NOT BE TOO LOW OTHERWISE MAS COULD NOT EXPECT TO MAKE ANY PROFIT. HE UNDERSTOOD THAT SINGAPORE WOULD PROBABLY BE PRESSING FOR VERY LOW SECTOR FARES QUOTE WHICH THEY COULD SUSTAIN BECAUSE THEY OPERATED 747S UNQUOTE. HE ALSO SAID THAT MALAYSIA WAS WORRIED THAT WE WOULD NOT CUT SIA FREQUENCIEWS BACK SUFFICIENTLY ON THE LONDON ROUTE THEREBY ENABLING THEM TO 6TH FREEDOM MUCH OF THE GENUINE MALAYSIAN TRAFFIC. WITHOUT BEING SPECIFIC WE TRIED TO REASSURE HIM ON THIS POINT.
3. HAMZAH SAID THAT MALAYSIA'S MAIN DESIRE WAS TO INCREASE THEIR FREQUENCIES INTO LONDON AND HONG KONG. THIS WAS MUCH MORE IMPROTANT TO THEM THAN OBTAINING MORE 5TH FREEDOM ROUTES. THEY LIKET THE IDEA OF A STRONG 3RD/4TH FREEDOM REGIME. TO THIS END
HE SAID THAT THEY INTENDED TO CUT AEROFLOT FREQUENCIES AND THEREBY STOP THEIR 6TH FREEDOM OPERATIONS TO EUROPE.
CONFIDENTIAL
÷