GRS 855

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 220850Z AUG 79

See 391 Sed

TO IMMEDIATE F C O

TELEGRAM NUMBER 1197 OF 22 AUGUST

INFO PRIORITY KUALA LUMPUR

UK/MALAYSIA AIR SERVICES.

=1840/1

HKK 18

23

PA

363

إلا الله

386

338

332

1. WE REGRET NOT BEING ABLE TO REPLY STABLES'S (DOT) LETTER TO LATHAM OF 6 AUGUST BY THE DATE REQUESTED. THE LETTER DID NOT

ARRIVE UNTIL 17 AUGUST.

2. WE UNDERSTAND THAT THE DRAFT CMU IS TO SET OUT THE NEW ARRANGE- MENTS AGREED AT THE JULY TALKS, TOGETHER WITH PREVIOUS ARRANGE- MENTS QUOTE IS SO FAR AS THEY ARE NOT SUPERSEDED UNQUOTE (FCO TELNO 208 TO KUALA LUMPUR). IN OUR VIEW, THE DRAFT CMU GOES BEYOND WHAT HAD BEEN AGREED WITH REGARD TO RIGHTS CURRENTLY HELD BY CPA, AND WE SHOULD BE GRATEFUL IF AMENDMENTS COULD BE MADE TO RETAIN THE FOLLOWING RIGHTS :

A. CPA'S FREIGHTER SERVICES (CMU OF 25 NOVEMBER 1977): STABLES MAINTAINS THAT THESE RIGHTS WERE NOT MENTIONED AT THE JULY TALKS. ALTHOUGH NOT PRESENT AT THE DISCUSSIONS, OUR REPRESENTATIVE (ADCOCK)

WAS BRIEFED ON THEIR PROGRESS, HE HAS REPORTED THAT THE ONLY CPA RIGHTS TRADED IN THE NEGOTIATIONS WERE THOSE REPORTED IN

FCO TELNO 559 TO HONG KONG AND FCO TELNOS 207 AND 208 TO KUALA

AND

LUMPUR. WE SEE NO REASON TO GIVE UP THE FREIGHTER RIGHTS: 338

B. SINGAPORE AS A BEYOND POINT ON UK ROUTE 3 : WE OFFERED TO GIVE UP SINGAPORE AT THE TALKS HELD IN MAY ONLY IN THE CONTEXT OF NO FIFTH FREEDOM RIGHTS FOR EITHER SIDE BEING EXCHANGED, WE AND CPA

SEE VALUE IN HOLDING ON TO THESE RIGHTS.

3. AS REGARDS PARA 3 OF STABLES' LETTER, IT WAS AGREED BETWEEN SESSIONS OF THE TALKS THAT CPA WERE PREPARED TO GIVE UP THEIR

UNUSED FIFTH FREEDOM RIGHTS BEYOND KUALA LUMPUR TO THE GULF,

4. WITH REGARD TO INTERMEDIATE RIGHTS (PARA 5 OF STABLES' LETTER),

WE ENTIRELY AGREE WITH THE PROPOSED APPROACH.

CONFIDENTIAL

15.

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