TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 40

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

ADVANCE COPY

المدينة ال

Hell HKTIOD

HOFOT19/07

PP F C O

GRPS 635

CYPHER/CAT A

RECERE lif

RECE

12 MAR 1974

HKK 21/12 NO DISTRIBUTION

PA

+58!

RE.

28

FM BTC HONG KONG 8709002

ROX

117, Goodfellow&

(207)

RESTRICTED

TO PRIORITY D T I TELNO CREDA 16 OF 7TH MARCH, 1974. INFO PRIORITY

F C O (FOR STUART MKIOD)

FOR WARRINGTON (AIR DIVISION) FROM ASTON

YOUR TELNO 19.

CPA.

Wide Bedial ffaff

WILKINSON CALLED TO SEE ME THIS AFTERNOON, ACCOMPANIED BY ARMSTRONG (AREAS SALES ROLLS ROYCE) AND HARTLEY (JARDINES).

HE SAID HE HAD A GOOD MEETING WITH BLUCK THIS MORNING AT WHICH

BLUCK HAD NOT PRESSED PRICES AS MUCH AS HE HAD EXPECTED. ARMSTRONG SAID BLUCK HAD SEEMED GENERALLY MORE FAVOURABLY DISPOSED TOWARDS TRI STAR THAN EVER PREVIOUSLY.

2.

BLUCK RAISED QUESTION OF SPECIAL TERMS FOR 524 (AS ANTICIPATED IN PARA 8 OF MY CREDA 15). BUT DID NOT PRESS IT WHEN WILKINSON DEMONSTRATED THAT NUMBER OF PRESENT OR ENVISAGED ROUTES ON WHICH 524 WOULD GIVE SAVING IS VERY SMALL. ARMSTRONG THINKS BLUCK WILL NEVERTHELESS RETURN TO THIS WHEN HE REALISES (WITH ADVICE

OF HIS TECHNICIANS) THAT 524 WILL BE MORE ECONOMICAL AND EASIER

TO MAINTAIN BECAUSE IT WILL BE UNDER LESS STRAIN.

3.

WILKINSON THINKS BLUCK AND, MORE PARTICULARLY HIS TECHNICAL ADVISERS, STILL HAVE SOME DOUBTS OVER ROLLS ROYCE ENGINE MAINLY BECAUSE OF

(4) AMERICAN REPORTS OF OPERATING COSTS.

(B) LINGERING BAD REPUTATION OVER SPARES AND SERVICING. (C) LONG TERM VIABILITY.

AND THAT THESE COULD STILL TIP DECISION AGAINST TRI STAR EEVEN IF DOUBTS OVER LOCKHEED APE RESOLVED.

4.

POINT (A) ABOVE HAS NOW BEEN LARGELY DEALT WITH BY PRODUCING TO BLUCK LATEST AMERICAN FIGURES WHICH SHOW ROLLS ROYCE GRAPH CROSSING OVER THAT OF RIVALS, FACT THAT BOEING ARE USING

R.R. HAS ALSO IMPRESSED BLUCK WHO HAVE DISCOVERED IF FOR HIMSELF

EXPRESSED SURPISE THAT RR HAD NOT MADE MORE OF IT THEMSELVES.

5. POINT (C) SEEMS TO BE A WANING FACTOR PRESUMABLY IN VIEW OF ASSURANCES YOU GAVE SWIRES (YOUR TELNO 227 TO GOVERNOR) AT WHICH BLUCK HINTED, I OUTLINED THE GIST OF PARAS 3,4 AND 5 OF THAT TELEGRAN

TO WILKINSON IN CONFIDENCE. HE THOUGH IT EXPLAINED MUCH OF BLUCKS ATTITUDE.

6. WILKINSON IS THEREFORE NOW CONCENTRATING ON POINT (B) AND GENERAL TECHNICAL MERITS OF ENGINE, HE IS MEETING CATHAY ENGINEERS TOMORROW (8TH) MORNING FOR THIS PURPOSE WHILE KOCHIAN SEES BLUCK. HE PROPOSES TO ELABORATE ON RECENT REPORTS FROM OPERATORS AND TO GIVE ASSURANCES RE SPARES.

7.

I ASKED HIM WHETHER HE DID NOT THINK IT NOW TIME TO MAKE

A JOINT APPEARANCE WITH KOCHIAN SO AS TO DEMONSTRATE UNITY

OF TRI STAR TEAM, ESTABLISH ROLLS INVOLVEMENT IN LOCKHEED FINANCIAL CONCESSIONS, AVOID ONE HALF BEING PLAYED OFF AGAINST THE OTHER AND TO BE BETTER ABLE TO CUT CORNERS IF NECESSARY NOW

TIME IS RUNNING OUT, HE SAID HE WOULD CERTAINLY HOLD HIMSELF AVAILABLE (UNTIL EARLY P.M. TOMORROW, WHEN HE RETURNS TO KUALA LUMPUR) TO JOIN KOCHIAN WHENEVER LATTER – OR BLUCK WISHED TO. BUT HE IS OTHERWISE CONTENT TO SEE KOCHIAN BEFORE AND AFTER MEETING, THINKS KOCHIAN WILL PREFER TO GO IN ALONE (AND HAD ASKED THAT R R DO THEIR PRESENTATIONS FIRST THIS TIME) AND THAT HE

WOULD DO BETTER IN TIME AVAILABLE TO HIM TO CONCENTRATE ON ENGINEERS.

m

8.

THEY HAD NO NEW INFORMATION ON THE LOCKHEED ASSURANCES LETTER.

8.

THEY PROMISED TO INFORM ME OF OUTCOME OF TOMORROW MORNINGS

DISCUSSIONS AS SOON AS POSSIBLE. I WILL TRY TO GET SOME NEWS TO YOU

BEFORE YOU MEETING WITH SWIRES BUT TIME MAY BE AGAINST IT.

10.

CORRECTION TO MY CREDA 15. ''VALIANTS** SHOULD OF COURSE

BE CONVAIRS''.

11.

COPY HAS GONE TO GOVERNOR AND SCARFE.

DTI COPY TO BPXVSLJUDOUS/CA2) AND MISS LACKEY (CRE2).

ASTON

NNNN

SENT AT 09452/07 EJH

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