}
ideas anticipating a broader liberalisation and to the US hinterland. If the US refuse such a be they who are insisting on having more than ther regional airports in the deal, and so they who it harder to obtain
an important presentational
-
ould add that BA are objecting to the idea that we agree US rights to Manchester in return for rights from UK 1 airports that no UK airline may in fact be licensed to h to take up. I can only interpret this as a wrecking c designed either to stop there being a deal on Manchester o stop it being on terms that might benefit their UK rivals き than them. However that may be, I intend to reject it mly.
It is quite usual for us to seek and secure rights on e basis of what airlines (often BA) would like to do, but efore they are licensed (our preference, after all, is to secure liberal agreements allowing airlines of both sides to fly on any route, subject only to licensing procedures).
15. We expect a short term deal also to cover Federal Express interest in fifth freedom rights from Prestwick (as part of developing a cargo hub there), though how far depends on:
(i)
the extent to which the USG seek rights for them:
availability of additional fifth freedom rights for services originating in Memphis;
- or new fifth freedom destinations in Europe as well.
We might seek fifth freedom rights beyond the US to Pacific and Australasian points in return.
(ii) reactions of UK cargo airlines whose business might be damaged by new rights for FedEx - we have sought their views and will submit further advice if there appear to be serious problems;
(iii) whether US/FedEx additionally seek Prestwick/Hong Kong (ie cabotage) and Hong Kong/Japan rights (there are some indications that they may). These present major problems for example, Hong Kong determines its own policies on these matters and can be expected to oppose both absolutely. If the US insisted on these rights in any Prestwick package, then we would be unable to agree one, at least at the coming round. But it seems to me unlikely that the US would sacrifice an otherwise satisfactory deal (if one emerges) over this.
understand that Mr Rifkind is likely to write to the Secretary State underlining the importance which he attaches to FedEx's oposals for Prestwick.
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