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CONFIDENTIAL
5. NEITHER DO WE AGREE WITH THE ARGUMENT THAT ARTICLE 2(5) OF THE ASA IS APPROPRIATE. IF TEHRAN IS AVAILABLE TO PAA, THEN THERE ARE NO GOOD GROUNDS TO CONCEDE TRAFFIC RIGHTS AT A POINT WHICH WAS DELIBERATELY REFUSED AT BERMUDA 2 NEGOTIATIONS.
6. WE ARE ALSO MINDFUL THAT CPA PLAN TO OPERATE A BOMBAY SERVICE IN LATE 1979. ALTHOUGH PAA ARE ONLY SEEKING AUTHORITY TO OPERATE DURING THE SUMMER 1979 SEASON, WE BELIEVE THAT THE CURRENT EXERCISE IS THE GROUND WORK TOWARDS THE ENJOYMENT OF RIGHTS ON A FULL TIME BASIS. WE THEREFORE DO NOT SUPPORT THE APPLICATION AND WOULD BE GRATEFUL FOR ADVICE AS TO HOW WE SHOULD REPLY TO PAA.
CATER
FILES MAED
N AM D
HK & GD
SAD
MED
SIR A PARSON
MR.BUTLER
MR. CORTAZZI
MISS BROWN
MR.MURRAY
MR. LEAHY
[COPIES SENT TO CAD/DOT]
COPIES TO:
HONG KONG GOVT. OFFICE IN LONDON
(SENT BY BAG TO WASHINGTON]
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CONFIDENTIAL