INTRODUCE SERVICES BETWEEN LONDON AND MANILA. THE REVISED
ROUTE PROPOSALS SUBMITTED BY EACH DELEGATION ARE ATTACHED
MERETO AS ANNEX A. THE DETAILS OF THE SECTOR TRAFFIC
RIGHTS WITHIN THE ROUTE STRUCTURE REQUIRED FURTHER
DISCUSSION. HOWEVER, AN EXCHANGE OF FIFTH FREEDOM
TRAFFIC RIGHTS BETWEEN A POINT IN THE GULF STATES AND
MANILA FOR BRITISH AIRWAYS AND BETWEEN KARACHI AND
LONDON AND BETWEEN ROME AND LONDON, FOR PHILIPPINE
AIRLINES WAS FOUND ACCEPTABLE BY BOTH DELEGATIONS,
4. CONSIDERABLE DISCUSSION ON THE PRESENT STRUCTURE
OF THE REGIONAL ROUTES TOOK PLACE IN WHICH THE
DESIGNATED AIRLINES OF BOTH CONTRACTING PARTIES INDICATED
REDUCED REQUIREMENTS IN VARYING DEGREES. THE DELEGATIONS
AGREED TO PURSUE THESE MATTERS, INCLUDING A PROPOSAL BY
THE UNITED KINGDOM DELEGATION FOR A RECIPROCAL EXCHANGE OF A NEW ROUTE BETWEEN HONG KONG AND CEBU, IN THE NEXT
ROUND OF CONSULTATIONS.
BOTH DELEGATIONS CHARGED PHILIPPINE AIRLINES AND
CATHAY PACIFIC AIRWAYS WITH THE TASK OF REVIEWING
PROCEDURES WITHIN THEIR POOL AGREEMENT FOR RECIPROCALLY
INCREASING THEIR CAPACITIES ON THE MANILA-HONG KONG
ROUTE IN LINE WITH EXISTING AND PROJECTED TRAFFIC DEMAND
ON THE ROUTE AND OF WORKING OUT A NEW BASIC CAPACITY PROVISION AS A FALL-BACK. THEY WERE ASKED TO SUBMIT AGREED PROPOSALS TO THEIR RESPECTIVE AERONAUTICAL AUTHORITIES WITHIN THREE (3) MONTHS.
5. THE DELEGATIONS CONSIDERED THE THREE (3) NEW ARTICLES
PROPOSED BY THE UNITED KINGDOM DELEGATION FOR INCLUSION IN THE AIR SERVICES AGREEMENT, THESE AND ALTERNATIVE
DRAFTS OF TWO OF THE ARTICLES PROVIDED BY THE PHILIP.
PINE DELEGATION WOULD BE CONSIDERED FURTHER BY THE
AERONAUTICAL AUTHORITIES AND DISCUSSED AT THE
NEXT ROUND OF CONSULTATIONS.
6. THE DELEGATIONS DISCUSSED THE POSSIBILITY OF
PROVIDING ON A RECIPROCAL BASIS FOR THE EXEMPTION OF THEIR BZSIGNATED AIRLINES FROM TAXATION BY THE
OTHER CONTRACTING PARTY. THE UNITED KINGDOM DELEGATION
INDICATED THE WILLINGNESS OF THE UNITED KINGDOM
METROPOLITAN TAX AUTHORITIES TO OPEN DISCUSSIONS ON
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