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5. ON THE RETENTION OF EXISTING BRITISH AND HONG KONG RIGHTS TO BALANCE OTHER MODIFICATIONS IN ICAP, THE FOLLOWING FOINTS AROSE:
(A) WE EXPLAINED OUR WISH TO RETAIN EXISTING RIGHTS ACROSS THE TASMAN, WITHOUT WHICH THE BA THROUGH SERVICE TO NEW ZEALAND WOULD PROBABLY NOT BE VIABLE. IF BA WITHDREW THIS SERVICE THERE WOULD BE NO DIRECT CONNECTION BETWEEN BRITAIN AND NEW ZEALAND, AND BA WERE AT PRESENT THE ONLY CARRIER BETWEEN PERTH AND AUCKLAND, THE AUSTRALIANS REPLIED THAT THEIR DECLARED OBJECTIVE WAS TO RESTRICT THE TASMAN TO THIRD/FOURTH FREEDOM CARRIERS ONLY. BUT PAN AM WERE STILL ON THE ROUTE, AND THEY WOULD NOT SEEK TO DISLODGE BRITISH AIRWAYS FOR THE TIME BEING.
(B) WE ARGUED FOR THE RETENTION BY CPA OF FIFTH FREEDOM RIGHTS FROM MALAYSIA, SINGAPORE AND JAKARTA TO WESTERN AUSTRALIA; ON THE GROUNDS THAT WITHOUT THESE RIGHTS THE
SERVICE WOULD NOT BE VIABLE, AND THAT THE WITHDRAWAL OF THE ONLY END-TO-END CARRIER WOULD BE UNPOPULAR IN WESTERN AUSTRALIA. THE AUSTRALIANS SAID THAT THEY HAD NO OBJECTION TO CPA CONTINUING TO EXERCISE FIFTH FREEDOM RIGHTS IN RESPECT OF NORMAL FIRST AND ECONOMY FARES, BUT THAT IT WAS INCONSISTENT FOR US TO SEEK TO LIMIT CHEAP FARES ON THE HONG KONG/AUSTRALIA ROUTES TO CPA AND QANTAS, BUT AT THE SAME TIME TO ASK FOR ACCESS FOR CPA TO CHEAP FARES BETWEEN ASEAN POINTS AND AUSTRALIA. OUTSIDE THE MEETING THE AUSTRALIANS SAID THAT, GIVEN THE MODIFICATIONS ENVISAGED TO THE ORIGINAL ICAP CONCEPT, THEY WOULD WISH TO RETAIN QANTAS' PRESENT OPERATING PATTERN VIA MANILA ON THEIR EAST COAST HONG KONG SERVICES AND ALSO RETAIN THEIR EXISTING CAPACITY. IN THAT EVENT CPA WOULD BE ENTITLED TO THE EIGHTH FREQUENCY WHEN THE NEED AROSE. ROBERTS SAID THAT IN THE ABSENCE OF A REPRESENTATIVE OF THE HONG KONG GOVERNMENT HE
THE
MUST RESERVE OUR POSITION. HE WOULD DISCUSS THE ISSUE IN HONG KONG EARLY NEXT WEEK, AND THEN SEND A CONSIDERED REPLY
TO THE AUSTRALIANS.
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