CONFIDENTIAL
PP SINGAPORE
GRS 581
CONFIDENTIAL
FM DOT 301557Z SEP 82
TO PRIORITY SINGAPORE
TELEGRAM NUMBER ALLOT 3 OF 30 SEPTEMBER
INFO GOVERNOR HONG KONG
пи
My Haar
Kr. Mary's
26405 - 1
ботат
SGAD
MAED
WM
UM 103
HK GD
YOUR ALLOT 4.
AIR SERVICES: PRESS INTEREST
ONLY ENQUIRY HERE HAS BEEN FROM ASSOCIATED PRESS WHO WERE
ANSWERED IN SAME VEIN AS YOUR PARAGRAPH 2. WE SHOULD PREFER TO KEEP
TO THIS LINE AND AGREE YOU SHOULD NOT PROVOKE AN UNEQUAL BATTLE
WITH THE PRESS IN SINGAPORE, BUT THE FOLLOWING POINTS MAY HELP IF
SINGAPORE AUTHORITIES DECIDE TO STIR IT UP.
2. WE UNDERSTAND SIA DO NOT WANT TO COMMENCE DAILY TRANSPACIFIC
SERVICES THROUGH HONG KONG BEFORE 1 APRIL 1983, SO THERE IS STILL
PLENTY OF TIME TO REACH AGREEMENT IF THERE IS WILLINGNESS ON BOTH
SIDES TO DO SO. THIS IS LIKELY TO BE MORE DIFFICULT RATHER THAN
LESS IF ENTRENCHED POSITIONS ARE ADOPTED IN PUBLIC.
3. YOU SHOULD NOT ATTEMPT TO MEET THE ARGUMENT ABOUT PROTECTIONISM
HEAD ON. RATHER YOU SHOULD EMPHASISE THAT THE MAIN PURPOSE OF THE
BILATERAL AIR SERVICES AGREEMENT IS TO PROVIDE FOR THE CARRIAGE OF
TRAFFIC BETWEN SINGAPORE AND THE UK INCLUDING HONG KONG (SEE
ARTICLE 7). HOWEVER 90 PER CENT OF PASSENGERS GETTING ON OR OFF
SIA'S SINGAPORE-PANGKOK-HONG KONG SERVICE AT HONG KONG ARE
TRAVELLING BETWEEN BANGKOK AND HONG KONG. SIMILARLY ON SIA'S
FLIGHTS BEYOND HONG KONG TO TAIPEH AND TOKYO ONLY ONE THIRD OF THE
PASSENGERS ARE TRAVELLING TO OR FROM SINGAPORE. THE REST ARE
TRAVELLING BETWEEN HONG KONG AND TAIEPH/TOKYO. WE HAVE TOLERATED
THIS SITUATION TO THE SUBSTANTIAL BENEFIT OF SIA FOR MANY YEARS
AND WE ARE PREPARED TO CONTINUE TO TOLERATE A SIMILAR POSITION ON
SIA'S TRANSPACIFIC SERVICES THROUGH HONG KONG, BUT WE CANNOT
REASONABLY BE EXPECTED TO ALLOW SIA TO ACT INDEFINITELY AS A
PREDOMINANTLY HONG KONG BASED CARRIER ON SECTORS WHICH ARE OF
VITAL IMPORTANCE TO CATHAY PACIFIC. THERE IS FULL COMPETITION
1
CONFIDENTIAL