TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 92

CONFIDEN AL

4.

I UNDERSTAND HONG KONG GOVERNMENT IS STILL CONSIDERING YOUR

TELEGRAM AND MAY TAKE SOME DAYS TO REPLY. MY GUESSS WOULD BE THAT

EVENTUAL REPLY WILL SUPPORT CPA'S COMMERCIAL FREEDOM OF CHOICE IN

SELECTING SUCH AIRCRAFT AS COMPANY EXPERTS BELIEVE BEST FOR

SHAREHOLDERS.

5. I HAVE ALSO SPOKEN TO ASTON (TRADE COMMISSIONER HERE) WHOSE OFFICE HAS NOT YET BEEN BRIEFED BY DTI ON THIS MATTER. HIS

IMMEDIATE REACTIONS, BASED ON PRECEDENT OF HONG KONG'S ATTITUDE

TO CONTRACT FOR MASS TRANSIT SYSTEM, GELLS WITH ESTIMATE IN

PRECEDING PARAGRAPH. I AM SENDING HIM COPIESSS OF YOUR TELEGRAM AND

THIS REPLY: AND HE HAS ASKED THAT, IF IT IS WISHED TO MAKE POLITICAL OR COMMERCIAL REPRESENTATIONS TO HONG KONG GOVERNMENT

HE SHOULD BE FULLY AND QUICKLY BRIEFED,

6. SO FAR AS I CAN SEE, ONLY EFFECTIVE PRESSURE ON CPA WOULD BE THREAT TO WITHDRAW ITS DESIGNATION FOR ROUTES: BUT I DO NOCT THINK THIS WOULD BE REASONABLE LINE OF ACTION AND I WOULD RECOMMEND VERY STRONGLY AGAINST IT. ONLY OTHER POSSIBILITY MIGHT BE TO OFFER MONEY IN SUCH FORM AS TO MAKE TRISTAR IRRESISTABILY ATTRACTIVE (IT IS ALREADY LOWER OFFER) IN FINANCIAL TERMS: BUT CPA'S RECENT RELUCTANCE TO BE BOUGHT OFF" IN PROBLEM OVER OSAKA SUGGESTS SUCH SOLUTION WOULD NOT PROVE ACCEPTABLE. EVEN IF ACCEPTED, IT WOULD PRESUMABLY INVOLVE HMG IN JUDGEMENT OF STABILITY OF LOCKHEED FROM WHICH CPA (WHOSE MONEY IS AT STAKE) APPEARS TO DISSENT.

MCDWILSON

ALLOT DISTRIBUTION MTD

HKIOD

2.

CONFIDENT IA L

む

}