0/13493 16:58

202 898 4224

COMMERCIAL WASH

14002/002

7

(By Fax)

Ma. Madpraley deo Hall

cc. Mr Bonten

HRD..

Mr R S Balme

IAD

يهم

Department of Transport

2 Marsham Street LONDON SW1P 3EB

13 May 1993

Dear Roo

Eft

14/5

UK/US/HONG KONG AIR SERVICES

British Embassy Washington

3100 Massachusetts Ave N.W. Washington DC, 20008-3600

Telephone: (202)-898-UCO Telex: RCA 211427 or 216760-WUI 64224 Facsimile: (202) 898-4255

HKC 181/21 RECEIVED IN DECISTRY

/ MAY 1993

TUSK C { 1.X

REGISTRY

PA

Action Taken

1. I saw Paul Gretch (Director of International Aviation, US DOT) today.

We spoke about Hong Kong and other things; the latter I report elsewhere.

2. On Hong Kong, Gretch told me that he had seen Cathay --Pacific's Washington Counsel earlier this week and had

discussed the prospect of restarting talks. He had heard back this very morning. In his view there clearly was sufficient flexibility on both sides to merit resuming the effort to forge a separation agreement.

3. He intends to discuss this in terms of arrangements, rather than substance with you next week, when he and Tom Martin (State) are in London for talks with the Russians. His own view, based on his conversations with Cathay Pacific's Counsel and on demands on US DOT and State Department officials' time, was that talks could not resume in earnest until September this year.

Your, Roy

RJ Griffins

Counsellor (Transport & Environment)

CC: Dr E J Hughes, AMD/FCO

Dr B K Humphreys, CAA Mr M Glass, HONG KONG

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