TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 82

(8

00 GOV HONG KONG

RR BCARFE HONG KONG

RR BTC HONG KONG

GR 320

CYPHER CAT A

FM DTI 081845Z

CONFIDENTIAL

RECEIVED IN REGISTRY No. 51

28 FEB 1974

НКК 20112

#KIOD

MTD (4) me Wright

CYPHER

Ebo

NEXT

TO IMMEDIATE GOVERNOR HONG KONG TELNO ALLOT 19 OF 8 FEBRUARY INFO BCARFE HONG KONG AND BRITISH TRADE COMMISSIONER HONG KONG.

CHOICE OF WIDE-BODIED AIRCRAFT BY CATHAY PACIFIC

GRATEFUL FOR YOUR INTERVENTION AND FOR THE ASSESSMENT GIVEN

IN YOUR ALLOT UNNUMBERED OF 4 FEBRUARY.

2. WE ARE ANXIOUS TO MAKE THE FULLEST USE OF THE BREATHING

SPACE PROVIDED BY THE MONTH'S DEFERMENT OF A COMMITMENT REPORTED IN OUR ALLOT 12 OF 31 JANUARY AND WE ARE GLAD TO HEAR FROM CONTACTS WITH JOHN SWIRE AT THIS END THAT CATHAY PACIFIC ARE

KEEPING AN OPEN MIND ON THIS PROBLEM.

3. WE ENTIRELY ACCEPT THE IMPORTANCE OF THIS DECISION FOR CATHAY'S FUTURE. THIS IS ONE OF THE REASONS WHY WE ARE ANXIOUS THAT IT SHOULD NOT BE RUSHED. ON THE INFORMATION WE HAVE HAD SO FAR WE ARE FAR FROM CONVINCED THAT THE DC 10 IS NECESSARILY

THE RIGHT OR ONLY CHOICE.

4. IN OUR VIEW HOWEVER IT IS ONLY THE MANUFACTURERS WHO CAN

CONVINCE CATHAY PACIFIC THAT THE BALANCE OF COMMERCIAL AND

TECHNICAL ADVANTAGES, AS SEEN AT THE BOARD MEETING ON 29 JANUARY, WAS MISTAKEN. WE HAVE INFORMED ROLLS ROYCE AND LOCKHEED OF THE

MONTH'S RESPITE AND HAVE URGED THEM TO TAKE FULLEST ADVANTAGE

OF THIS TO SELL THEIR PRODUCTS. WE SHALL BE GLAD IF YOU AND BTC WILL KEEP US IN TOUCH WITH THE PROGRESS OF EVENTS IN HONG

KONG AND WILL LET US KNOW IF ANY FURTHER ACTION ON THIS FRONT

IS NEEDED.

5. IN ADDITION ARRANGEMENTS HAVE BEEN MADE FOR ADRIAN SWIRE

AND JOHN BROWN TO MEET ROGERS AND WARRINGTON OF DTI ON THEIR RETURN FROM HONG KONG ON 14 FEBRUARY. WE SEE THIS AS PROVIDING AN OPPORTUNITY FOR THEM TO DISCUSS WITH GOVERNMENT REPRESENTATIVES

THE POLICY ISSUES AFFECTING CPA'S CHOICE WHICH THE COMPANY

ARE UNABLE TO REVEAL TO COMMERCIAL REPRESENTATIVES. IF (AS WE HOPE) DEWAR IS ABLE TO COME TO LONDON FOR THE AUSTRALIAN BRIEFING MEETINGS ON 20/21 FEBRUARY THIS WILL PROVIDE A

FURTHER OPPORTUNITY FOR DISCUSSIONS AT THAT LEVEL IF NECESSARY.

DOUGLAS-HOME

PA

Z

NNNN