CONFIDENTIAL
FM HONG KONG
TO ROUTINE FCO
TELNO 1314
OF 120959Z AUGUST 93
INFO ROUTINE DOT, PORT LOUIS
DOT FOR IAD
3
CONFIDENTIAL
A
280.0
181/23
(4)
151264
MOLIAN 0827
YOUR TELNO 552: HK/MAURITIUS AIR SERVICES
1.
FURTHER TO TUR, TALKS WITH THE MAURITIANS WERE HELD IN PORT LOUIS ON 3-4 AUGUST. WE PROPOSED TO CONCLUDE AN INTER-GOVERNMENTAL ARRANGEMENT IN THE FORM OF AN AGREED RECORD TO FACILITATE THE DEVELOPMENT OF AIR SERVICES BETWEEN THE TWO PLACES. THE MAURITIAN AUTHORITIES AGREED. DISCUSSIONS ON THE TEXT OF A DRAFT AGREED RECORD WENT SMOOTHLY. THE ONLY MAJOR DIFFICULTY ENCOUNTERED WAS THE MAURITIANS' SINGLE DESIGNATION POLICY. WHILST THE MAURITIANS HAD RAISED NO DIFFICULT WITH THE ENTRANCE OF CPA INTO THE END-TO- END MARKET, THEY REFUSED TO CONCEDE ANY 5TH FREEDOM RIGHTS BEYOND MAURITIUS TO SOUTH AFRICA. THEY ALSO INSISTED ON THE PROVISION OF MORE 3RD/4TH FREEDOM CAPACITY FOR EACH SIDE THAN WE HAD PROPOSED AT THIS STAGE. OUR MAIN CONCERN WAS THE RESULTING OVER-CAPACITY IN THE MARKET AND HENCE THE OPPORTUNITY FOR AIR MAURITIUS' TO CARRY A LARGE VOLUME OF SIXTH FREEDOM TRAFFIC PARTICULARLY BETWEEN SOUTH AFRICA AND HONG KONG. EVENTUALLY NO AGREEMENT WAS REACHED.
2. AS CPA HAD ALREADY GIVEN NOTICE OF TERMINATION OF THEIR JOINT SERVICE AGREEMENT WITH AIR MAURITIUS AND THAT THE LATTER IS THE ONLY ONE OPERATING ON THE ROUTE, IT IS NOW UP TO THE MAURITIAN SIDE TO COME BACK WITH PROPOSALS ACCEPTABLE TO BOTH SIDES IN ORDER TO ENABLE THEIR SERVICE TO CONTINUE.
FORD
YYYY
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