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SPACE...
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Your telegram 264: U.K.-Philippines Air
Services Agreement.
We agree that the Cathay Pacific Airways
decision is unfortunate. We would have liked if
possible to have dissuaded them from this action
but after careful consideration have decided that
on balance it would be inadvisable at this stage to
attempt to bring any further pressure to bear.
2.
If we sought to force CPA to go against their
commercial judgment they would be bound, if they
complied, to ask us in return for assistance in
other ways which we might not be able to give.
3. For your own information we are already in
difficulties in other respects with CPA. They were
most dissatisfied with the results of negotiations
with Malaysia and Singapore at the end of 1966 and
we have just received further representations from
/Hong Kong
L
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