KREN
لوا
CONFIDENTIAL
Record
20
Mr. Murray
Problem
CPA/Philippines
Proposalutaintie
+ tracking that the Second Teberam, if iṭ
comed work copead to the fourmor cloned withe
Malav
4/10.
The Philippines CAB recently advised cancelling CPA's pant traffic right between Jesselton (Sabah) and Manila. Cathay
Pacific Airways thereupon decided to suspend forthwith
calling at Manila on their service between Hong Kong and
Jesselton on the grounds that Sabah Chinese were reluctant
to book passages to Hong Kong if they had to transit Manila. H.M. Embassy Manila, who report that President Marcos has
turned down the advice of his Civil Aeronautics Board have
Board
tried without success to persuade CPA to continue the
service. It is feared that CPA's action may well start
renewed talks of boycotts and other anti-British measures.
Recommendation
2. It is recommended that a temporising telegram should be sent to Manila as in the attached draft, agreeing that CPA's action is unfortunate, but that as we have trouble in other directions with CPA we should not at this stage try further
The Board of Trade to get them to reverse their decision.
concur.
Mr. Gallagher is agreeable to a telegram being
sent in these general terms. If Hong Kong Department, to
whom this minute is being copied, see any objection I should be grateful if they would communicate direct with S.E.A.D.
Background
3. The U.K./Malaysia Air Services Agreement includes a
route for the U.K. Hong Kong/Brunei/Jesselton, and a route for Malaysia, Points in Malaysia/Singapore/Bangkok/Saigon/
/Hong Kong.
PA.
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