CONFIDENTIAL
061776
MDLIAN 3352
DELHI/HONG KONG SECTOR, A FURTHER REDUCTION OF THE ALREADY INSUFFICIENT END-TO-END CAPACITY HAD RESULTED. WE TABLED STATISTICS SHOWING THE AMOUNT OF TRAFFIC CARRIED DURING 1991 AND 1992. THE INDIAN SIDE DISPUTED OUR FIGURES AND QUOTED (WITHOUT GIVING US ANY COPY) THEIR OWN FIGURES WHICH SHOWED A SIGNIFICANTLY LOWER RATE OF GROWTH IN PASSENGER TRAFFIC. WE COUNTER-PROPOSED THAT EACH SIDE BE ALLOWED TO OPERATE THREE ADDITIONAL SERVICES ON THE BASIS OF EXISTING ROUTEINGS AND THAT THE INDIAN SIDE'S B707 ENTITLEMENTS BE CONVERTED TO 320 SEATS IF THE NUMBERS OF ADDITIONAL FREQUENCIES PER WEEK CAN BE AGREED. THE INDIAN SIDE WAS UNABLE TO AGREE WITH OUR COUNTER-PROPOSAL AND SUGGESTED A FURTHER ROUND OF TALKS QUOTE PREFERABLY UNQUOTE BEFORE THE END OF OCTOBER 1993 TO RESOLVE THE OUTSTANDING ISSUES.
COMMENT.
4. WE ARE NOT SURE WHETHER THE INDIANS HAD GENUINE PROBLEMS WITH HONG KONG'S DESIGNATION CRITERIA AGREED UNDER THE INITIALLED HONG KONG/INDIA ASA OR THAT THEY HAD SIMPLY USED IT AS AN EXCUSE TO DELAY A RESPONSE TO OUR DEMAND FOR ADDITIONAL CAPACITY. FOR THE TIME BEING, WE SHOULD PROBABLY WAIT TO SEE IF THE INDIANS WOULD APPROACH US FURTHER ON THIS MATTER. THE IMPRESSION WE GOT AT THE CONSULTATIONS WAS THAT THE INDIAN DELEGATION WAS NOT FULLY AWARE OF THE PREVIOUS DISCUSSIONS IN 1989 AND THAT THEY WOULD NEED SOME TIME TO CLARIFY THE MATTER WITHIN THEIR GOVERNMENT MACHINERY. AS REGARDS THE CAPACITY ISSUE, WE WOULD KEEP PUTTING PRESSURE ON THEM FOR THE NEXT ROUND OF CONSULTATIONS.
PATTEN
YYYY
ΜΑΙΝ
44
DISTRIBUTION
48
.AIR SERVICES
AMD
LEGAL ADVISERS
PUSD//MR HARRISON E203
HKD
SAD
PS
PS/MR LENNOX-BOYD PS/PUS
MR CROWE
MR BONE
SIR J COLES
MR HUM
MR MASEFIELD
PAGE
3
CONFIDENTIAL
ADDITIONAL
D/TP//IAD RM S608
CAA/LINT AVIATION. TOURISM DIV
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