GRS 1200

FIDENTIAL.

CONFIDENTIAL

FM BOARFE HONG KONG 0410102 MAX 79.

TO IMMEDIATE DO T

TELEGRAM NUMBER ALLOT 25 OF 4 MAY

INFO IMMEDIATE PORT MORESBY

INFO SAVING MANILA, WELLINGTON.

FOR BRYANT FROM WILSON.

186

225

HK RACEVED IN

PA

8 MAY 1979

INDEY

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1. IN THE CONTINUING ABSENCE OF ANY NEW GENERAL MANAGER FOR AIR NIUGINI, DEV MITRA (ANG PLANNING AND DEVELOPMENT MANAGER) AND EUGENE ZAU (ANG'S HONG KONG REPRESENTATIVE) CALLED ON CPA (MILES AND MCARTHUR) TODAY AND THEREAFTER ASKED FOR AN APPOINTMENT

WITH BCARFE.

2. CPA ADVISED ME THAT ANG WAS SEEKING TO AMEND ITS PRESENT PATTERN OF HONG KONG OPERATIONS (1 BOEING 707 OPERATING PORT MORESBY-HONG KONG) INTO TWO BOEING 707S OPERATING PORT MORESBY-MANIAL-HONG KONG (WITH MANILA/HONG KONG BLINDED) FROM 1 JULY 1979. CPA SAID THAT IN REPLY THEY HAD RESTATED CPA'S LONG TERM INTEREST, IN OPERATING HONG KONG-PORT MORESBY-AUCKLAND (WITH FULL RIGHTS) BUT HAD NOT STATED THE IMPLICIT REQUIREMENT TO USE EITHER TRISTARS OR BOEING 747S. WHILE EMPHASISING THAT AUCKLAND WAS CPA'S KEY REQUIREMENT CPA HAD APPARENTLY MENTIONED THAT (PENDING INTRODUCTION OF AUCKLAND SERVICES) THEY MIGHT BE TEMPORARILY INTERESTED IN AUTHORITY TO EXTEND PRESENT BOEING 707 SERVICES BEYONG PORT MORESBY TO BRISBANE WITHOUT REIGHTS ON THE PORT MORESBY/BRISBANE SECTOR. CPA HAD ADDITIONALLY CLARIFIED THAT THEY NO LONGER REQUIRED ANY MENTION OF MANILA IN THEIR ROUTE. THE CPA/ANG CONVERSATION HAD APPARENTLY GONE ON TO DISCUSS POSSIBLE ANG 5TH FREEDOM REQUIREMENTS AT HONG KONG IN THE COURSE OF WHICH MITRA HAD DENIED ANY INTEREST IN 5TH FREEDOM RIGHTS TO ANY POINT IN JAPAN BUT HAD HINTED AT OTHER POSSIBLE 5TH FREEDOM REQUIREMENTS. THESE AIRLINE CONVERSATIONS HAD OF COURSE BEEN PURELY EXPLORATORY BUT IT SEEMED CLEAR THAT ANG WAS SEEKING TO DISCOVER WHETHER A FORMAL GOVERNMENTAL APPROACH WOULD BE WORTHWHILE. CPA TOLD ME THAT THERE SEEMED TO BE THE MAKINGS OF AN OVERALL DEAL AND I ACCORDINGLY AGREED TO INFORMAL TALKS WITH

MITRA AND ZAU.

CONFIDENTIAL

13. WHEN

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