TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 108

S 250

IMMEDIATE

DESKBY FCO 251200Z

CONFIDENTIAL

HKK 18~/3

RENZO NA:65.S.RY RO. 51 2 8 NOV 1977

DESKBY HONG KONG (GOVERNOR AND BCARFE) 251200Z-

BAY

INDEM

FA

Co

CYPHER CAT A

ра

82

FM BHC KUALA LUMPUR 250915Z

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DESKBY FCO AND HONG KONG 25120OZ

TO IMMEDIATE FCO TELNO 323 OF 25 NOVEMBER 1977

AND TO IMMEDIATE HONG KONG (FOR GOVERNOR AND BCARFE)

REF ALLOT 17 TO KL: UK/MALAYSIA AIR SERVICES

1. TALKS BETWEEN AERONAUTICAL AUTHORITIES TOOK PLACE IN FRIENDLY ATMOSPHERE ON 24 AND 25 NOVEMBER. A CMU WAS SIGNED ON MORNING OF 25 NOVEMBER (COPY FOLLOWS BY BAG).

2. CMU ESSENTIALLY FORMALISES CONTENTS OF AIDES MEMOIRES EXCHANGED IN LONDON IN OCTOBER, BUT CLOSES LOOPHOLES LEFT IN BA/MAS COMMERCIAL AGREEMENT OF 21 OCTOBER. MALAYSIANS REASONABLY ARGUED THAT INTENT OF AIDES MEMOIRES IN REGIONAL CONTEXT WAS TO EQUTE CPA AND MAS FREQUENCIES AND IT FOLLOWED FROM OUR EARLIER ARRANGEMENTS IN RESPECT OF MAS DC10 REGIONAL DEVELOPMENTS THAT NEW FREQUENCIES FOR CPA ROUTES SHOULD BE RELATED TO BASIC BOEING 707 ENTITLEMENT WITH PROVISION FOR USE OF OTHER AIRCRAFT OF EQUIVELENT CAPACITY. HONG KONG WAS CONSULTED BY TELEPHONE AND MOST HELPFULLY CONCURRED IN THIS MALAYSIAN INTERPRETATION OF THE SITUATION WHICH WE ALSO SHARE. AMENDMENTS WERE ACCORDINGLY MADE IN THIS SENSE BUT WE MANAGED TO RETAIN A CPA ABILITY TO OPERATE TWO WEEKLY SERVICES BEYOND KUALA LUMPUR TO BAHRAIN AND UAE WITH ANY TYPE OF AIRCRAFT THOUGH ANY SUCH CAPACITY WOULD FALL WITHIN OVERALL FREQUENCY LIMITATION ON BEYOND FREQUENCIES RELATED TO BOEING 707 CAPCITY.

CONFIDENTIAL

/3. THE CMU