CODE 18-77
Mr Morland
CONFIDENTIAL
Reference
Hex184/1
RELIVED IN REGISTRY NO. 51
29 MAY 1979
UK/MALAYSIA AIR SERVICES TALKS
1.
ན་ག 1.
по
Jzęś
I attended Mr Steele's "pre-briefing meeting" this afternoon.
He is very conscious of the need to reach a settlement with the Malaysians on this occasion. Apart from general political arguments he realises the need to safeguard the Concorde route and to avoid any problems during Mr Parkinson's forthcoming visit to Kuala Lumpur. He was considering two possible ways of playing the talks; the first would be the standard procedure of going through the statistics again, possibly attempting to get cheaper fares in return for the third DC10 and gradually agreeing on a package. The second way would be to float, informally at first, a snap agreement on a package without going into statistics or the technical justification at all. This would carry some risks as we would give away our hand and might then be asked for more. There was also the possibility that Mr Noor Hassan would prefer rather longer talks so that he could claim that it was his
Fough high bargaining that achieved a settlement.
2. It was clear that on the trunk route the DOT were thinking of a third but not a fourth DC10.
3. On the regional routes there should be no problems on the direct routes between Hong Kong and Malaysia. The Hong Kong representatives will however press very hard for the Malaysians to lose at least some of their fifth freedom rights. Their instructions at the moment would allow them to concede continued rights to Taipeh but not to Tokyo (although the latter are also provided for in the ASA). Mr Wilson who was present this afternoon thought the Hong Kong Government would probably be willing in the end to accept that fifth freedom traffic at the present level should continue but he should not be quoted on this and will not of course say this on Tuesday morning. Mr Steele's intention is to allow the Hong Kong representatives to make their case and then intervene if necessary to promote a settlement.
R+R
24 May 1979
c.c. to:-
Mr Cortazzi
Mr Murray
Mr Flower, SEAD
Mr Quantrill, HK&GD
A E Stoddart
Maritime, Aviation & Environment Department
See (255) Dea.s
No Williamson See (255)
- we should keep an eye on the problem of 5th freedom right over
•・ Hong Kong: NsWilson, of course, does not speak for Hong Kong and we don't want the DOT to sell the
pass
too
readily.
CONFIDENTIAL
8229/5