CONFIDENTIAL
C. COMMERCIAL ARRANGEMENTS. IT WAS ACCEPTED AT THE FEBRUARY TALKS
THAT BOTH SIDES WERE INTERESTED IN PROGRESSIVE GROWTH ON THE 3/4TH FREEDOM SECTOR TO MEET PUBLIC DEMAND WITHIN A FRAMEWORK THAT WOULD FACILITATE ECONOMIC OPERATIONS BY THE AIRLINES. THIS COULD BEST BE ACHIEVED BY A CLOSE WORKING RELATIONSHIP BETWEEN THE AIRLINES BY WAY OF A COMMERCIAL AGREEMENT ON THE LINES OF THE CPA/THAI INTERNATIONAL AGREEMENT.
2. WE REALISE THAT THE MALAYSIANS WANT TO HOLD ON TO THEIR FIFTH FREEDOM RIGHTS BEYOND HONG KONG BUT THE FACT IS THAT THEY WILL BENEFIT FROM CPA COMING OFF THE KUALA LUMPUR/PERTH ROUTE AND, AGAINST A BACKGROUND OF A LARGE IMBALANCE OF EARNINGS IN FAVOUR OF MAS, WE SEE NO REASON WHY CPA SHOULD SUFFER IN ISLOLATION UNDER
THE AUSTRALIAN ICAP REGIME.
3. WE LOOK FORWARD TO YOUR SUPPORT FOR THESE OBJECTIVES ON WHICH THE HONG KONG TEAM WILL BE GLAD TO EXPAND AT THE BRIEFING MEETING (DOT TELNO ALLOT 43).
MACLEHOSE
FILES MAED
SEAD
HAGAD
[COPIES SENT TO CAD/DOT]
SPD
MIR CORTAZZI MISS BROWN
MR MURRAY
CONFE
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