CONFIDENTIAL
KONG TO TAIPEH. MAS FLIGHTS WILL OF COURSE STILL BE FREE TO PROCEED TO TOKYO WITH PASSENGERS ORIGINATING IN MALAYSIA AND
TAIPEH
(E) CPA WILL ENJOY FIFTH FREEDOM RIGHTS BEYOND
KUALA LUMPUR TO SINGAPORE AND JAKARTA ONLY, SUBJECT
TO THE SAME RESTRICTION ON SEATING CAPACITY
AS IS APPLIED TO MAS SERVICES BEYOND HONG KONG TO TAIPEH. CPA SERVICES WITH SUCH
FIFTH FREEDOM RIGHTS MAY OPERATE EITHER TO SINGAPORE OR JAKARTA, BUT THE SAME SERVICE MAY NOT OPERATE TO BOTH.
4. THE MALAYSIANS THEN TABLED AN ALTERNATIVE DRAFT, CONTAINING THE FOLLOWING MAIN DIFFICULTIES FOR US:-. (A) NUMBERS AND TYPE OF AIRCRAFT TO BE OPERATED WERE SPECIFIED FOR TRUNK ROUTES UP TO 1982 AND REGIONAL ROUTES UP TO 1983: AND IN OUR VIEW THE NUMBER
OF FREQUENCIES PROPOSED IS QUITE UNREALISTIC:
(B) FOUR DC10S WOULD OPERATE ON THE TRUNK ROUTE
IMMEDIATELY:
(C) MAS WOULD ENJOY FIFTH FREEDOM RIGHTS BEYOND HONG KONG TO TAIPEH AND TOKYO FOR UP TO 7
AIRBUSES A WEEK (ALTHOUGH IN DISCUSSION THE MALAYSIANS SUGGESTED THAT THESE RIGHTS MIGHT BE LIMITED TO
THE EQUIVALENT OF THEIR CURRENT SEAT CAPACITY ON THESE ROUTES):
(D) THE CURRENT BA/MAS COMMERCIAL AGREEMENT WOULD
BE ABROGATED.
5. LENGTHY AND DETAILED DISCUSSION OF THESE TWO
DOCUMENTS LEFT THE TWO SIDES STILL FAR APART. THE
MAIN POINTS OF DIFFICULTY ARE THE MALAYSIAN
INSISTENCE THAT THE AGREEMENT SHOULD INCLUDE
SPECIFIC NUMBERS OF AIRCRAFT TO OPERATE ON BOTH
ROUTES AFTER 1981, AND THAT EVEN THOUGH THEY GAIN WHAT WE REGARD AS COMPENSATING ADVANTAGES ELSEWHERE, THEY RETAIN AT LEAST THEIR PRESENT FIFTH FREEDOM RIGHTS TO
TOKYO. DISCUSSIONS RESUME ON MONDAY MORNING.
2
CONFIDENTIAL
/6. MR PARKINSON