CONFIDENTIAL
FM HONG KONG
TO ROUTINE FCO
TELNO 19
OF 060651Z JANUARY 93
INFO ROUTINE DTP, PHNOM PENH
DTP FOR IAD
CONFIDENTIAL
031462
MDLIAN 5492
18175
RECEIVED IN REGISTRY
7 JAN 1993
DESK OFFICER
REGISTRY
PA
Action Taken
ра
INDEX
ORIGINATOR'S CORRECTION TO PARA 2
OUR TELNO 1565: HK/CAMBODIA AIR SERVICES
}
1. ON 29 SEPTEMBER, THE HONG KONG TRANSPORT LICENSING AUTHORITY (ATLA) ISSUED A SCHEDULED SERVICE LICENCE TO DRAGONAIR (HDA) TO, INTER ALIA, PHNOM PENH. HDA ORIGINALLY INTENDED TO COMMENCE CHARTER SERVICES IN THE EARLY PART OF 1993 BUT HAVE RECENTLY COME TO US WITH A REQUEST TO OPEN NEGOTIATIONS WITH THE CAMBODIAN GOVERNMENT OF A FORMAL ASA. IT SEEMS THAT HDA ARE CONCERNED THAT, WITHOUT THE ABILITY TO OPERATE SCHEDULED SERVICES, THEY ARE UNLIKELY TO BE ABLE TO HOLD THEIR OWN AGAINST STRONG COMPETITION FROM OTHER REGIONAL CARRIERS, SUCH AS SILK AIR, MAS AND THAI INTERNATIONAL.
2. THE CURRENT ARRANGEMENTS GOVERNING AIR SERVICES BETWEEN HK AND CAMBODIA ARE EMBODIED IN AN EXCHANGE OF NOTES BETWEEN THE UK AND CAMBODIA IN 1969 WHICH PROVIDES FOR AIR SERVICES TO BE OPERATED SPECIFICALLY BY ROYAL AIR CAMBODGE AND CPA. CLEARLY, THESE ARRANGEMENTS CANNOT MEET HDA'S NEEDS BUT FOR OBVIOUS REASONS WE ARE NOT KEEN TO SEEK AMENDMENTS TO THE UK ARRANGEMENT AT THIS STAGE. THE ONLY OTHER ALTERNATIVE TO AN ASA WOULD BE FOR US TO NEGOTIATE AN INTER-GOVERNMENTAL ARRANGEMENT ALONG THE LINES OF THAT AGREED WITH THE VIETNAMESE AT THE END OF 1991. SUCH AN ARRANGEMENT PROVED A VERY USEFUL EXPEDIENT IN ENABLING SCHEDULED SERVICES TO VIETNAM TO BE INTRODUCED QUICKLY. HOWEVER, GIVEN THE CHINESE ADVERSE REACTION TOWARDS THE VIETNAMESE ARRANGEMENTS, WE DO NOT FAVOUR PURSUING THIS COURSE FOR A SECOND TIME. CAMENDMENTS TO THE LAST THREE SENTENCES OF THIS PARA IN OUR ORIGINAL TELNO 19 REFLECT THE OUTCOME OF FURTHER DISCUSSIONS WITH OUR LEGAL ADVISORS. APOLOGIES FOR ANY INCONVENIENCE CAUSED.)
3. HDA'S RECENT CONTACTS WITH THE CURRENT CAMBODIAN
ADMINISTRATION SUGGEST THAT THEY ARE WELL DISPOSED TO THE IDEA OF
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