CONFIDENTIAL
CONFIDENTIAL
HKC 181/6
RECEIVED IN REGISTRY
1993
REGISTRY
DESK OFFICER
FM HONG KONG
INDEX
PA
Action Taken
TO ROUTINE FCO
TELNO 195
sly ex
OF 090745Z FEBRUARY 93
Ching! Noved ex 1/2
If no
ontward
2
147717
MOLIAN 2962
tel, b.u i ore went
RB
INFO DTP, PRETORIA, CAPE TOWN, UKREP JLG HONG KONG, PEKING
DTP FOR IAD.
OUR TELNO 39: HONG KONG/SOUTH AFRICA AIR SERVICES.
SUMMARY
1. THE SOUTH AFRICANS STILL INSISTED THAT THE TRAFFIC RIGHTS UNDER THE 1972 UK/SOUTH AFRICA EXCHANGE OF NOTES WERE AMBIGUOUS AND NO AGREEMENT COULD THEREFORE BE REACHED REGARDING THE EXISTING RIGHTS AVAILABLE TO BOTH SIDES. WE REPEATED OUR LINE BUT, NEVERTHELESS, AGREED TO SET THE ISSUE ASIDE AND PROCEED TO NEGOTIATE FOR A BALANCED EXCHANGE OF RIGHTS TAKING INTO ACCOUNT THE CURRENT NEEDS AND ASPIRATIONS OF BOTH SIDES. A CONFIDENTIAL MEMORANDUM OF UNDERSTANDING ON ROUTES BETWEEN HONG KONG AND SOUTH AFRICA WAS SIGNED.
DETAIL
2. CONSULTATIONS WITH THE SOUTH AFRICANS HELD ON 4-5 FEBRUARY 1993 IN HONG KONG AS SCHEDULED. WE REFERRED TO DTP'S (FIELDER) LETTER REGARDING THE INTERPRETATION OF RIGHTS GRANTED TO EACH SIDE UNDER THE 1972 UK/SOUTH AFRICA EXCHANGE OF NOTES AND REQUESTED A FORMAL RESPONSE. THE SOUTH AFRICANS CONFIRMED THAT LEGAL ADVICE HAD BEEN SOUGHT BUT SAID THAT A TOTAL OF THREE DIFFERENT LEGAL OPINIONS HAD BEEN RECEIVED REGARDING THE INTERPRETATION OF TRAFFIC RIGHTS EXCHANGED. THEY SAID THAT THERE WERE SO MANY INCONSISTENCIES IN THE WORDING OF THE 1972 EXCHANGE OF NOTES THAT THE MEANING WAS AMBIGUOUS. THEY ALSO REMARKED THAT AN IMBALANCED EXCHANGE OF TRAFFIC RIGHTS WOULD RESULT IF OUR INTERPRETATION OF THE 1972 EXCHANGE OF NOTES WAS ADOPTED. IT WAS CLEAR THAT THEY WERE NOT PREPARED TO ACCEPT THE INTERPRETATION ADVANCED BY THE UK AND HONG KONG GOVERNMENTS. ON THAT BASIS, SOUTH AFRICANS PROPOSED TO START AFRESH AND TO NEGOTIATE FOR A BALANCED EXCHANGE OF TRAFFIC RIGHTS FOR BOTH SIDES TO OPERATE. ALTHOUGH WE MAINTAINED OUR POSITION REGARDING THE INTERPRETATION OF EXISTING RIGHTS AVAILABLE TO BOTH SIDES, WE AGREED TO ADOPT A PRAGMATIC APPROACH AND TO CONSIDER A FRESH EXCHANGE OF TRAFFIC RIGHTS TAKING INTO ACCOUNT THE PRESENT CIRCUMSTANCES.
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