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CONFIDEN MAL CONFID
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GRS 3395
CONFIDENTIAL
FM HONG KONG 278915Z JUN 79
TO IMMEDIATE F C O
TELEGRAM NUMBER 668 OF 27 JUNE
ACK
28
1720. 51 *379
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INFO IMMEDIATE PEKING, ROUTINE HONG KONG GOVERNMENT OFFICE LONDON.
PEKING TELNO 587 TO F C 0: UK/PRC AIR SERVICES NEGOTIATIONS,
1. WE DO NOT UNDERSTAND LU'S POINT (PARA 7 OF TUR) THAT IF CPA WERE TO OPERATE A SERVICE BETWEEN LONDON AND HONG KONG, THEN FOR CPA TOO BE DESIGNATED FOR HONG KONG/SHANGHAI WOULD IN EFFECT MEAN
GIVING CPA A ROUTE BETWEEN LONDON AND SHANGHAI. IF HE IS
CONCERNED THAT PASSENGERS FROM LONDON MIGHT CHANGE FROM ONE CPA
FLIGHT TO CPA'S SHANGHAI FLIGHT, WE DO NOT SEE WHY HE SHOULD PICK OUT LONDON RATHER THAN ANY OF THE OTHER POINTS THAT CPA SERVES AT PRESENT. IN ANY CASE, WITH CAAC HAVING THE GREATER SHARE OF THE HONG KONG/SHANGHAI FREQUENCY/CAPACITY, THE ODDS ARE THAT ·
CPA FASSENGERS FROM LONDON WOULD CHANGE TO A CANC FLIGHT IN
HONG KONG, A PRACTICE WE ARE SURE CPA WOULD NOT DISCOURAGE. IF THE POINT MADE BY LU HAS ANY VALIDITY, THEN IT WOULD APPLY IN THE CONTEXT OF THE TRUNK ROUTE EQUALLY TO BA'S CONNECTING SERVICES OUT
OF LONDON TO THE REST OF THE WORLD.
2. NOR DO WE UNDERSTAND THE RELEVANCE OF A POSSIBLE CPA SERVICE
TO LONDON TO THE PRESENT TALKS IN PEKING, FOLLOWING THE NORMAL PRACTICE WITH AIP SERVICES NEGOTIATIONS, WE SUGGEST THAT ROGERS SHOULD PURSUE THE LINE THAT DESIGNATION OF AIRLINES SHOULD BE
LEFT OVER UNTIL LATER.
3. WHILE WE ARE SURE THAT NO ATTEMPT IS BEING MADE TO MUDDY CPA'S WATERS, PERHAPS WE SHOULD REPEAT IN ESSENCE OUR POSITION ON THE POSSIBILITY OF CPA GOING ONTO THE LONDON ROUTE. BRIEFLY, IF CPA DOES APPLY TO THE CAA, IT WILL HAVE BEEN ENCOURAGED TO DO SO BY THE HONG KONG GOVERNMENT. OUR MOTIVE WILL HAVE BEEN THE GENERAL DISSATISFACTION WITH THE PRESENT MONOPOLY SERVICES: AND OUR BELIEF THAT THE WAY TO AVOID SOME OF THE CAUSES OF THE DISSATIS- FACTION REPEATING THEMSELVES FOR THE COMPETITOR IS FOR A HONG KONG
BASED CARRIER TO PROVIDE THE ALTERNATIVE TO BA. WE WILL BE
/CONSIDERING
CONFIDENHAI