GRS 250
CONFIDENTIAL
FM HONG KONG 140948Z JULY 82
TO PRIORITY F C O
TELEGRAM NUMBER 756 OF 14 JULY
INFO CANBERRA
CONFIDENTIAL
B
WP
YOUR TELNO 4861 UK/SINGAPORE AIR SERVICES
CPA HAVE NOT CONSIDERED EXPLORING WITH QANTAS THE
OPTION SET OUT IN PARA 3 OF TUR BECAUSE:
A. THEIR PREFERENCE IS FOR A 3RD/4TH FREEDOM EXCHANGE WITH THE AUSTRALIANS.
B. THE SIN/PER SECTOR SUFFERS FROM OVER CAPACITY AND CONCOMITANT HEAVY DISCOUNTING AND LOW YIELDS.
C. THEIR RELATIONS ARE AT A LOW EBB ARISING FROM THE DELAYING TACTIICCS WHICH QANTAS HAVE EMPLOYED TOWARDS CPA'S BIDS FOR ADDITIONAL CAPACITY IN RECENT YEARS AND THE HEAVY DISCOUNTING NOW EMPLOYED BY QANTAS ON THE HKG/MNL SECTOR.
2. WE ACCEPT THAT IT MAY BE DIFFICULT TO WINKLE OUT QANTAS FROM THE HKG/MNL SECTOR ALTHOUGH, IF TALKS ARE ARRANGED, WE HOPE AN ATTEMPT CAN BE MADE. IF THIS DOES NOT PROVE POSSIBLE, WE PROPOSE THAT AN EQUITABLE EXCHANGE WOULD BE SIN/PER RIGHTS FOR CPA (MY TELNO ALLOT 39 TO DOT).
YOUDE
LIMITED MAED
HK & GD
SPD
[COPIES SENT TO CAIR/DOT]
MR ADAMS
!་
CONFIDENTIAL
[NOT ADVANCED]
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