CONFIDENTIAL
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TO BE JUSTIFIED BY THE TERMS OF THE 1979 CMU.
4.
ANY INCREASE OF CAPACITY ON THE TRUNK OR THE REGIONAL
ROUTES WILL FALL TO BE RESOLVED IN ACCORDANCE WITH THE
CONFIDENTIAL MEMORANDUM OF UNDERSTANDING OF 1979 AND IN THE
LIGHT OF SUBSTANTIAL TRAFFIC FIGURES. IF THE MALAYSIAN
GOVERNMENT WISH TO MAKE SPECIFIC PROPOSALS FOR INCREASES IN
CAPACITY THERE IS NO ALTERNATIVE TO THEIR PROPOSING AIR SERVICES
CONSULTATIONS SO THAT THE CASE FOR CAPACITY INCREASES CAN BE
EXAMINED AND DISCUSSED. ALTHOUGH WE CAN MAKE NO OPEN-ENDED
COMMITMENTS, WE WILL OF COURSE HONOUR THE TERMS OF THE 1979 CMU
AND WILL GIVE SYMPATHETIC CONSIDERATION TO THEIR REQUESTS WITHIN
THAT CONTEXT. WE SEE NO REASON WHY THE MATTER SHOULD NOT BE
AMICABLY RESOLVED IN THE NORMAL WAY, AND WE ARE WILLING TO HOLD
AIR SERVICE CONSULTATIONS FOR THE PURPOSE IF THAT IS WHAT THE
MALAYSIANS WANT. WE CANNOT HOWEVER PREJUDGE OUR RESPONSE ON
EITHER THE REGIONAL OR THE TRUNK ROUTE BEFORE WE HAVE GONE
THROUGH THE FIGURES WITH THE MALAYSIANS, WITH THE AIRLINES OF
BOTH SIDES PRESENT IN THE USUAL WAY. ISHAK WILL WE HOPE UNDER-
STAND THAT WE HAVE TO PAY REGARD TO OUR RELATIONS WITH OUR OWN
AIRLINES AND WITH THE HONG KONG GOVERNMENT.
5.
FOR YOUR OWN INFORMATION, BOTH ROBERTS AND STEVENS (DOT)
ARE HEAVILY COMMITTED TO AIR SERVICE NEGOTIATIONS BETWEEN NOW
AND THE END OF MARCH. IF ISHAK SEEKS EARLY TALKS WE WILL DO
OUR BEST TO MEET HIS WISHES, BUT EVEN IF WE CAN FIT HIM IN
DURING THE NEXT SIX WEEKS IT WILL ALMOST CERTAINLY HAVE TO RE
IN LONDON.
6.
FOR YOUR OWN INFORMATION AGAIN, MAS PROPOSED SCHEDULES
FOR THE SUMMER OPERATING PERIOD AS RECENTLY SUBMITTED TO DOT
PROVIDE FOR UNLIMITED CAPACITY B747 SERVICES ON THE TRUNK ROUTE
AND FOR A NUMBER OF DC-10 SERVICES ON THE REGIONAL ROUTE. AS
A ROUTINE MATTER IN CONFORMITY WITH THE CURRENT ARRANGEMENTS
AGREED BETWEEN THE TWO GOVERNMENTS DOT HAVE APPROVED THE FORMER
SUBJECT TO A 295 SEAT RESTRICTION AND NOT APPROVED THE LATTER.
POSITION ON TRUNK ROUTE REMAINS AS SUMMARISED IN PARA 3
ESSENTIAL FACTS OF BRIEF NO 6 FOR SECRETARY OF STATE'S VISIT.
AS REGARDS REGIONAL ROUTE, IN INFORMAL EXCHANGES
7.
8.
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CONFIDENTIAL