CONFIDENTIAL
7661
HAVE ADVERSE REPERCUSSIONS ON THEIR AIRCRAFT
USAGE.
THEIR PROBLEMS WOULD, BE FURTHER
COMPOUNDED BY THE FACT THAT THEIR FLEET IS A MIX
OF THE SHORTER PANGE 136 TYPE AND THE LONGER PANGE
236 TYPE B747. BA HAVE ALSO ESTIMATED THAT IF
THEY WERE TO SWITCH TO GATWICK A PART OF THEIR
B747 OPERATION ON THE SCALE REQUIRED TO JUSTIFY
ITSELF AS A WORKABLE PROPOSITION, THEY WOULD
NEED TO PURCHASE AN ADDITIONAL P747 IN ORDER TO
MAINTAIN THEIR PRESENT RATE OF AIRCRAFT
UTILISATION.
2. WE ARE THEREFORE UNLIKELY TO MEET THE CHINESE ON THE 'EQUAL OPERATING OPPORTUNITY' POINT EVEN AFTER 1983, AND SHOULD NOT LEAD THEM TO RELIEVE WE WILL. HOWEVER, WE AGREE THAT IT WOULD BE
UNREASONABLE AND TACTICALLY UNWISE FOR US TO CLOSE THE DOOR
AGAINST THE POSSIBILITY OF ANY FUTURE DISCUSSION OF THE
QUESTION WHEN BA ONITS HONG KONG FROM THE TRUNK ROUTE
(ALTHOUCH THE CHINESE, OF COURSE, ARE NOT AWARE THAT THIS WILL BE AS EARLY AS 1983).
YOU MAY THEREFORE SAY
IF THE CHINESE RAISE THE QUESTION THAT HE CANNOT
MAKE ANY FIRM COMMITMENT TO THEM ABOUT OUR LIKELY
ATTITUDES TO THE GATWICK/HEATHROW POINT AT SOME UNSPECIFIED
FUTURE DATE.
BUT IT WOULD OF COURSE RE OPEN TO THEM
TO RAISE THE CUESTION ACAIN, WHEN BA STARTS FLYING
LONDON-PEKING DIRECT, AND WE SHOULD BE PREPARED TO CONSIDER
THE QUESTION THEN IN THE LIGHT OF ALL THE CIRCUMSTANCES AT THE
TIME.
3.
PARAGRAPH 4 OF TUR, BA ARE CONTINUING TO SERVE
COLOMBO FROM HEATHROW. LIKEWISE, THEY WILL SERVE MANILA
FROM HEATHROW, IF WE PEACH AGREEMENT ON THE INTRODUCTION OF
SERVICES. BRITISH CALEDONIAN MOT BA SERVE ROGOTA AND OPERATE
FROM CATWICK.
CARRINGTON
FILES
MAED
FED
HK & GD
LEGAL ADVISERS
MR CORTAZZI MISS BROWN MR MURRAY
[COPIES SENT TO CAD/DOT]
2
CONFIDENTIAL
Y