GRS 240
CONFIDENTIAL
CONFIDENTIAL
EM HONG KONG 110900Z SEP 79
Go
20 PRIORITY F C O
TELEGRAM NUMBER 1271 OF 11 SEPTEMBER
INFO PRIORITY MANILA
$17
TENSTRY
Taken
LOJA
Withamyon
R+R)
12.9
Lee (410
HKK 184/1.
12 SEP 1979
INDEX
393/1
DOT TELNO ALLOT 84 AND YOUR TELNO 698: UK/PHILIPPINES AIR SERVICES.
1. VERY LITTLE INFORMATION ON CEBU IS AVAILABLE (PARA 2 OF FIRST TUR). CPA SEE CEBU AS A TOURIST AREA AND WOULD LIKE TO SEE IT IN THE ROUTE SCHEDULE ON A RECIPROCAL BASIS, SO THAT THEY WOULD HAVE THE OPTION OF STARTING SERVICES ONCE THE TOURISM INFRA- STRUCTURE HAS DEVELOPED SUFFICIENTLY TO ACCOMMODATE VOLUME TRAFFIC.
HOWEVER THEY DO NOT ENVISAGE COMMENCEMENT OF SERVICES BEFORE
1981 AND DO NOT WISH TO SEE CONCESSIONS MADE TO SECURE CEBU.
TO PREVENT LOSS TO PAL OF TRAFFIC VIA DOMESTIC SECTORS, CPA AND WE
WOULD PREFER TO SEE UK ROUTE 2 AMENDED TO READ QUOTE HONG KONG MANILA, CEBU UNQUOTED AND PHILIPPINES ROUTE SCHEDULE AMENDED TO MATCH, OTHERWISE, WE AGREE WITH THE PROPOSALS IN PARA 2 OF YOUR TELNO 698.
2. CONTRARY TO THE EARLIER UNDERSTANDING REACHED BETWEEN CPA AND
PAL AS RECORDED IN MY TELNO 589, PAL ARE NOW CLAIMING THAT THE POOL AGREEMENT IS NOT ACCEPTABLE. IN PARTICULAR, PAL SEEK A PLANNING LOAD FACTOR OF 70 PERCENT AND A POOL PAYMENT LIMIT OF
5 PERCENT, NEITHER OF WHICH IS ACCEPTABLE TO CPA OR OURSELVES.
CPA HAVE THEREFORE INFORMED PAL THAT THEY HAVE NO OPTION BUT TO
INFORM THEIR GOVERNMENT THAT IT HAS NOT AFTER ALL PROVED POSSIBLE
TO SUBMIT AGREED PROPOSALS TO THEIR AERONAUTICAL AUTHORITIES
AS REQUIRED BY THE AGREED MINUTE (MANILA TELNO 80 TO FCO). THIS RAISES A MAJOR HONG KONG ISSUE WHICH, UNLESS RESOLVED IN THE INTERIM, NEED TO BE BORNE IN MIND AT THE FORTHCOMING TALKS.
3. WE WILL RESPOND TO DOT TELNO ALLOT 92 (JUST RECEIVED)
AS SOON AS POSSIBLE.
MACLE HOSE
[COPIES SENT TO CADIDOT]
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HKJG D SEAD MISS BROWN
MRMURRAY