TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 16

HOFO013/15

00

00 F C O

GRPS 385

DESKBY 158900Z

CYPHER/CAT A

FM BTC HONG KONG 150750Z

CONFIDENTIAL

RECEIVED IN REGISTRY No. 51

18 MAR 1974

HKK 21/12

IMMEDIATE

ADVANCE COPY

HD HKICD

Hol TRED Hol FRI ны

D

Goodtellen

фальма

2+

[0.7.1.]

TO IMMEDIATE D T I TELNO CREDA 24 OF 15TH MARCH, 1974. INFO IMMEDIATE

DEKSBY 158900Z

F C O(FOR STUART HKIOD)

FOR WARRINGTON (AIR DIVISION) FROM ASTON.

MY CREDA 22.

G.P.A.

KOCHIAN'S MEETINGS WITH BLUCK TODAY APPEAR TO BE GOING WELL. FURTHER MEETINGS HAVE BEEN ARRANGED FOR TOMORROW MORNING. THIS AND FACT THAT HE HAS MANAGED TO DISPOSE OF MOST OF THE POINTS MENTIONED IN MY CREDA 22 CONVINCES HIM THAT LOCKHEEDS ARE NOW REALLY IN WITH A CHANCE. BUT FOCUS HAS NOW TURNED BACK ON TO ROLLS ROYCE.

20 BLUCK HAS ASKED KOCHIAN WHEN ROLLS ROYCE ARE GOING TO PRODUCE OFFER OF SPECIAL TERMS FOR CONVERSION FOR 524 ENGINE (SEE PARA 2 OF MY CREDA 16).

3.

APPARENTLY, DESPITE HIS REACTION IN TALKS WITH WILKINSON, BLUCK HAS NOW BEEN ADVISED BY HIS ENGINEERS THAT THE 22B IS NOT VIABLE FOR ALL THE ROUTES ULTIMATELY ENVISAGED AND THAT 524 MILL BE NECESSARY IN DUE COURSE. BLUCK RECOGNISES THAT IT WILL DE NECESSARY TO START WITH THE 22B AND THAT 524 CANNOT BE AVAILABLE UNTIL AFTER FIRST FOUR AIRCRAFT HAVE BEEN DELIVERED. THIS IS ACCEPTABLE FOR IMMEDIATE ROUTE REQUIREMENTS BUT HE NEEDS AN ASSURANCE THAT THE 526 WILL DEFINITELY BE AVAILABLE BY THE TIME THAT ROUTE EXPANSION REQUIRES IT WHICH MAY NOT BE UNTIL 1978. HE ALSO NEEDS TO DE ASSUNED THAT ROLLS ROYCE WILL BE PREPARED TO CARRY OUT THE ENGINE EXCHANGE IF NOT FREE (WHICH HE WOULD NATURALLY PREFER) THEN AT LEAST FOR A REASONABLE SUM. HE WOULD PROBABLY ACCEPT THAT THIS WOULD HAVE TO TAKE INTO ACCOUNT THE BÉRVICE. ODTAINED FROM

THE 2200.

KOCHIAN CONSIDERS THAT UNLESS A LETTER GIVING ASSURANCES

ON AVAILABILITY AND AT LEAST EVIDENCE OF GOOD FAITH ON COST CAN BE

HANDED OVER TO BLUCK DURING THE WEEK-END THE TIRSTAR PROSPECTS MAY BE

SERIOUSLY PROJUDICED, HE IS SAID TO HAVE DESCRIBED IT AS A **CRITICAL

FACTOR"".

5. ARMSTRONG IS PRESSING ROLLS ROYCE TO PROVIDE WRITTEN ASSURANCE URGENTLY. GRATEFUL IF YOU COULD ADD YOUR WEIGHT. WILKINSON IS NON BACK IN ROLLS ROYCE HEAD OFFICE IN LONDON AND SINCE

HE HAD LATEST DISCUSSION WITH BLUCK ON THIS YOU MIGHT WISH TO

SPEAK TO HIM AS WELL AS SPEAKING TO JACKSON.

6.

COPY HAS GONE TO GOVERNOR AND BCARFE.

DTI PASS COPIES TO ROGENS (US/CA2) AND MISS LACKEY CRE2.

ASTON

PINICIPI

SENT AT 08177/15 EJH