WP.
RESTRICTED
GR 140
RESTRICTED
FM SINGAPORE 200853Z MAY 82
TO ROUTINE F.C.0.
TELNO 113 OF 29TH MAY 1982
AND TO ROUTINE GOVERNOR HONG KONG.
1.
AIR SERVICES TALKS WERE INCONCLUSIVE.
2. ON THE REGIONAL SERVICES LIM HOCK SAN FOR SINGAPORE INSISTED THAT BERMUDA PRINCIPLES GAVE THEM THE RIGHT TO MOUNT ADDITIONAL TRANSPACIFIC SERVICES THOUGH HONG KONG. STEVENS MAINTAINED WITH EQUAL FORCE THAT THEY OUGHT TO REDUCE SUBSTANTIALLY THE DEPENDENCE OF THEIR EXISTING SERVICES ON FIFTH FREEDOM OPPORTUNITIES THOUGH HONG KONG RATHER THAN MAKE THE SITUATION WORSE BY ADDING MORE TRANSPACIFIC SERVICES. BUT IT BECAME CLEAR IN PRIVATE CONVERSATION BETWEEN STEVENS AND LIM THAT SIA WOULD BE PREPARED TO SACRIFICE AT LEAST SERVICES TO TOKYO IF NOT TAIPEH IN ORDER TO SECURE A DAILY TRANSPACIFIC. STEVENS SAID THEY WOULD HAVE TO RELINQUISH ALL THREE POINTS, WHICH THEY WERE NOT PREPARED TO DO SEMI-CLN BUT IT WAS RECOGNIZED THAT SOME SUCH ARRANGEMENTS WOULD BE CONSISTENT WITH THE ROGERS-PILLAY EXCHANGES OF 1978. A FURTHER MEETING, WILL BE ARRANGED IN LONDON BEFORE THE SUMMER HOLIDAYS TO DISCUSS THE SCOPE AND TIMING OF SUCH A PLAN IN MORE DETAIL, PRECEDED POSSIBILY BY DISCUSSIONS BETWEEN CPA AND SIA AT MANAGING DIRECTOR LEVEL.
3. NO AGREEMENT WAS REACHED ON THE SIA/AIR CANADA PLAN FOR SERVICES ON THE ROUTE TORONTO-LONDON-SINGAPORE. THE MORE THAT IS LEARNED OF THESE PLANS THE MORE APPARENT IT BECOMES THAT SIA INTEND TO USE THE SCHEME AS A LEVER TO GAIN ACCESS TO TRANSATLANTIC TRAFFIC RIGHTS WHICH WILL BE VERY HARD TO TAKE AWAY FROM THEM ONCE AIR CANADA ARE FREE TO OPERATE THE ROUTE WITHOUT SUCH AN ARRANGEMENT AFTER JANUARY 1994. IN ANY CASE THERE IS AS YET NO AGREEMENT BETWEEN SIA AND AIR CANADA SO IT WAS AGREED TO LOOK AT IT AGAIN AGAINST THE CRITERIA IN THE 1973 CMU WHEN THE TEXT OF THEIR AGREEMENT WAS AVAILABLE.
HENNINGS
LIMITED MACD
FED SEA D
HK GD MR ADAMS
COPIES SENT TO THIS TELEGRAM
CAIR/DOT
WAS NOT
ADVANCED
RESTRICTED
THIS IS A COPY
THE ORIGINAL HAS BEEN CLOSED FOR
40 YEARS UNDER FOI
----------
EXEMPTION No. 271).
10 10 10 10 NÈS WA KO