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5. WE POINTED OUT TO MALAYSIAN OFFICIALS THE CONCESSIONS WHICH WE
HAD MADE ON THE TRUNK ROUTE AND THE IMBALANCE IN EARNINGS IN
FAVOUR OF MALAYSIA. WE ALSO DREW ATTENTION TO THE REAL DIFFICULTIES
FOR CATHAY PACIFIC OVER FIFTH FREEDOM RIGHTS FROM HONG KONG TO
TAIPEI AND TOKYO. CPA FELT THAT THEY HAD LOST ON THE DEAL AND IT
WOULD BE EXTREMELY DIFFICULT TO GET THEM TO CONCEDE ANYTHING FURTHER. HUSSEIN ONN DID INDEED ADMIT THAT WE HAD MADE SOME
CONCESSIONS TO THEM ON THE TRUNK ROUTE.
6. WE DISCUSSED THE PROBLEM OF FIFTH FREEDOM RIGHTS BRIEFLY WITH
THE GOVERNOR AND WITH BREMBRIDGE IN HONG KONG ON 29 JUNE. BREMBRIDGE
SAID THAT IT WOULD COST MONEY TO CONCEDE TO MALAYSIA WHAT THEY HAD
BEEN ENJOYING HITHERTO. BUT I HAD THE IMPRESSION THAT, IN THE LIGHT OF HIS RECENT DISCUSSIONS WITH STEELE, WHICH HE INTERPRETED AS MEANING THAT WE WERE IN AN ENTIRELY NEW BALL-GAME, CATHAY WOULD BE PREPARED, IF PRESSED, TO MAKE SOME FURTHER SMALL CONCESSIONS, JE AT LEAST THE MAINTENANCE OF MAS'S CURRENT RIGHTS. MUCH WILL OF
COURSE DEPEND ON WHETHER THEY GET A FAIR DEAL FROM THE CAA OVER
THE LONDON-HONG KONG ROUTE.
7. THE SECRETARY OF STATE AGREED WITH HUSSEIN ONN THAT WE SHOULD
RAISE THE LEVEL OF THE NEGOTIATIONS TO MINISTERIAL LEVEL. WE
WANTED TO CLEAR THIS PROBLEM UP. HE NOTED THAT MR PARKINSON HAD
PROMISED TO KEEP A PERSONAL EYE ON THIS MATTER,
HUNT
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