RESTRICTED
FM FCO
TO PRIORITY MANILA
TELNO 129
OF 210836Z JULY 93
INFO PRIORITY HONG KONG
RESTRICTED
18119
076767
MDLOAN 7869
8
CORRECTED VERSION
VERSION
PARA 5
YOUR TELNO 176: HONG KONG PHILIPPINES AIR
SERVICES
SUMMARY
STRY
Ai Taken
Philippines insistence on a legally binding and therefore publishable exchange enclosing a Confidential Memorandum of Understanding (CMU) is unacceptable. Previous CMUS between the UK and Philippines not subject to exchange of Notes, why this? Detailed explanation of reasons needed from Philippines authorities.
DETAIL
2. Legal advice, based on paperwork forwarded by Post, is that the Philippines insistence on a legally binding exchange of Notes is contrary to the practice and principle of the use of CMUS in air services matters. It is an important principle that when delegations sign CMUS it is on the understanding that they do not need further official confirmation of the content, unless this is explicitly stated; otherwise, there would be a danger of countries not sticking to deals just because they had second thoughts. Furthermore, there is a need to keep commercially sensitive matters confidential; our consistent practice, and that of our bilateral partners, is to achieve this by the conclusion of non-binding, non-publishable CMUS which implement binding Air Service Agreements. We regard all exchanges in binding terms as international agreements which are capable of being registered and published. To try to run the two together is clearly unacceptable and the Philippines proposal should be rejected.
3.
Previous CMU's signed between the UK and the Philippines have not had to be confirmed by an exchange of notes and it is
One difficult to see why they should want this to be. possibility is that paragraphs 4 and 5 of the CMU contain rights
1
PAGE RESTRICTED