PRIORITY
CYPHER CAT/A
GRS 400
FM
TOKYO 080700Z
CONFIDENTIAL -
GEIVEL IN
REGISTRY No.52
-9 JUL 1974
HKK2/12
So
sal to HKIOD)
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CONFIDENTIAL
TO PRIORITY FCO TEL NO 608 OF 8 JULY 74.
REPEATED ROUTINE FOR INFO TO HONG KONG FOR GOVERNOR.
(GOVERNOR PLEASE PASS TO BOTH BCARFE AND BTC HONG KONG).
AND WASHINGTON.
FA
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TRISTARS FOR CATHAY PACIFIC.
1. IN A CONVERSATION WITH ROGERS IN HONG KONG, IMMEDIATELY
BEFORE THE LATTER LEFT FOR TOKYO ON 5 JULY, DUNCAN BLUCK (MANAGING DIRECTOR OF CATHAY PACIFIC) SAID THAT:
(A)
CATHAY HAD NOW DECIDED TO BUY A REDIFON SIMULATOR.
SUBJECT TO FORMAL BOARD APPROVAL, A LETTER OF INTENT WOULD BE
SIGNED ON 15 JULY AND AN ANNOUNCEMENT WOULD BE MADE
IMMEDIATELY AFTERWARDS.
CONV
(B) CATHAY WOULD NOW ALMOST CERTAINLY CONVERT THE OPTION
ON THEIR THIRD TRISTAR INTO A FIRM ORDER BY THE END OF SEPTEMBER. BOTH ITEMS OF INFORMATION WERE OF COURSE GIVEN IN STRICT
CONFIDENCE.
2. AS REGARDS THE THIRD TRISTAR, BLUCK EXPLAINED THAT THE OPTION TERMS WERE SO FAVOURABLE THAT UNLESS PRICES ON THE SECOND-HAND MARKET DROPPED APPRECIABLY BELOW THE PRESENT LEVEL IT WOULD PAY CATHAY TO TAKE UP THEIR OPTION WITH LOCKHEED RATHER THAN TO BUY A SECOND-
HAND AIRCRAFT. THIS REVERSES THEIR PREVIOUS THINKNG.
༣.
THE ONLY ALTERNATIVE CATHAY STILL HAVE IN MIND IS
THE POSSIBLE LEASE OF A SURPLUS TRISTAR FROM BRITISH
AIRWAYS. HOWEVER BLUCK SAID THAT BA'S ORIGINAL OFFER
HAD BEEN UNATTRACTIVE AND THAT A REVISED OFFER PROMISED
FOR THE END OF JUNE HAD NOT BEEN FORTHCOMING.
HE THEREFORE ASSUMED THAT BA HAD FOUND OTHER USES FOR
THEIR TRISTARS AND WERE NO LONGER INTERESTED IN A DEAL WITH CATHAY.
CONFIDENTIAL
14.
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