RESTRICTED

FM FCO

RESTRICTED

181115

RECEIVED IN DECISTRY

13 JUL 1993

TO IMMEDIATE HONG KONG TELNO 657

OF 091626Z JULY 93

DESK OFFICER

AND TO IMMEDIATE RANGOON

*C.X

HOISTRY

on Taka

8

046720 MDHOAN 5498

MIPT: HONG KONG/BURMA ASA: MYANMA AIRWAYS INTERNATIONAL

1. Following is text of letter for onward transmission to U Tin Ohn, Director General of Civil Aviation. There will not (not) be a signed original.

BEGINS

UK

-

MYANMAR AIR SERVICES AGREEMENT

1. Thank you for your letter of 21 June to Mr Fielder, I am replying in his absence on leave.

2.

We have considered the contents of your letter and have also met your representatives in London who have explained various aspects of the ownership of MAI in more detail.

3.

We are not satisfied that the arrangements currently in place meet the designation criteria for substantial ownership and effective control under Article 3(1) of the UK/Burma Air Transport Agreement although we understand that, in future, the ownership arrangements are likely to continue to evolve and this problem may cease to exist.

4.

Having regard to the value to passengers of opening up air services between Myanmar and Hong Kong and recognising that the only services operating under the ATA will be between Myanmar and Hong Kong and that Myanmar is in the process of negotiating a new ASA with Hong Kong which would be able to incorporate wording embracing the current ownership structure of MAI, the UK has sought to identify a means by which MAI could be permitted to commence services from 15 August.

5. Upon receipt of a request from the Myanmar aeronautical authorities to designate MAI, the UK would therefore be prepared,

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