TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 4

CONFIDENTIAL

4. ROGERS DISCUSSED WITH BLUCK THE PROPOSED UTILSATION OF CATHAY'S TRISTAR FLEET. THE FIRST THREE ARE

REQUIRED FOR OPERATION HONG KONG/TOKYO DIRECT: HONG KONG/ SINGAPORE: AND HONG KONG/TAIPEI/TOKYO. THE UK

ALREADY HAS THE NECESSARY TRAFFIC RIGHTS FOR ALL THREE ROUTES AND NO DIFFICULTIES ARE EXPECTED OVER THE OPERATION OF WIDE-BODIED JETS. HOWEVER, THE FOURTH TRISTAR IS PLANNED FOR USE BETWEEN HONG KONG AND OSAKA. BLUCK ACCEPTED ROGER'S VIEW THAT IT WOULD BE EXTREMELY RISKY FOR CATHAY TO PLACE A FIRM ORDER FOR THIS AIRCRAFT UNTIL WE COULD BE MORE CONFIDENT OF RESOLVING OUR DIFFICULTIES WITH JAPAN OVER THE NUMBER OF MOVEMENTS AT OSAKA AND THE TYPES OF AIRCRAFT TO BE USED. HE THEREFORE UNDERTOOK TO CONSULT DEPT OF TRADE FURTHER ON THIS QUESTION BEFORE FIRMING UP THE OPTION ON THE FOURTH

TRISTAR.

5.

THUS, BARRING LAST MINUTE SLIPS, IT NOW SEEMS THAT THE REDIFON SIMULATOR AND THE THIRD TRISTAR ARE IN THE BAG. ON THE OTHER HAND, IT IS VERY UNLIKELY THAT THE OPTION ON THE FOURTH TRISTAR WILL BE CONVERTED TO A FIRM ORDER BEFORE THE TEXTRON DEADLINE.

6. FCO PLEASE PASS ADVANCE COPIES TO DEPT OF INDUSTRY (FOR WARRINGTON) AND DEPT OF TRADE (FOR HUDSON CAI).

WESTLAKE.

FILES

MID

FED

FRD

SIR D MAITLAND

MR WILTON

MR WILFORD MR MALE

COPIES TC:

MR WARRINGTON

DEFT OF INDUSTRY

MIR HUDSON

DEFT OF TRADE

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CONFIDENTIAL