CONFIDENTIAL
046426 MDLOAN 54
REACHED.
3. ON TIMING, SECOND TUR MAKES IT CLEAR THAT THE CAMBODIAN AUTHORITIES ARE ANXIOUS FOR SERVICES TO START AS SOON AS POSSIBLE. WE SEE NO ADVANTAGE FROM THE CAMBODIAN PERSPECTIVE IN DELAYING TALKS UNTIL AFTER THE MAY ELECTIONS. ON THE OTHER HAND, A DELAY UNTIL THEN MIGHT SEE THE CHINESE IN A BETTER FRAME OF MIND. IN THE MEANTIME, AND PENDING A HK/CAMBODIAN ARRANGEMENT, DRAGONAIR AND KAMPUCHEA AIRLINES COULD BE GIVEN TEMPORARY OPERATING PERMITS: AS AN INTERIM THAT APPEARS TO US TO BE PREFERABLE TO THE PROSPECT OF CHARTER OPERATIONS FOR THE REASONS GIVEN IN PARA 1 OF FIRST TUR. HOWEVER DRAGONAIR MIGHT NOT BE ATTRACTED EVEN TO THIS, GIVEN THEIR PREFERENCE FOR OPERATING UNDER GOVERNMENTAL ARRANGEMENTS. IT MIGHT ALSO TEND TO UNDERMINE THE POINT WE PROPOSE TO MAKE TO THE CHINESE AT PARA 2(A) ABOVE. WE SUGGEST YOU DISCUSS FURTHER WITH DRAGONAIR THE IMPLICATIONS OF DELAY UNTIL MAY FOR THEIR OPERATIONS BEFORE COMING TO A DECISION.
GRATEFUL FOR YOUR VIEWS ON WHETHER THE EXISTING UK/CAMBODIA EXCHANGE OF LETTERS OF 23 JANUARY 1969 SHOULD BE TERMINATED IN PARALLEL WITH THE CONCLUSION OF THE NEW ARRANGEMENTS. IF SO, AND SUBJECT TO ANY VIEWS PHNOM PENH MAY HAVE WE CAN INSTRUCT PHNOM PENH TO TAKE THE NECESSARY ACTION WITH THE MFA AT THE APPROPRIATE
TIME.
4.
HURD
YYYY
ΜΑΙΝ
47
DISTRIBUTION
54
.AIR SERVICES
AMD
LEGAL ADVISERS
PUSD//MR HARRISON E203
HKD
SEAD
FED
PS
PS/MR LENNOX-BOYD
PS/PUS
MR CROWE
MR BONE
SIR J COLES
ADDITIONAL
7
IAD RM S608
DEPT TRANSPORT
INT AVIATION / TOURISM
DIV CAA.
2
PAGE CONFIDENTIAL