TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 179

CONFIDENTIAL

WHICH THE TWO AIRLINES WILL OPERATE IN POOL. THEY HAVE ALSO CONCLUDED A SECOND AGREEMENT COVERING FIFTH FREEDOM CAPACITY WHICH LAYS DOWN THE CAPACITY TO BE OPERATED BY EACH AIRLINE ON STATED FIFTH FREEDOM SECTORS UP TO 30 SEPTEMBER 1978, AND PERMITS THE AIRLINES TO AGREE FURTHER FIFTH FREEDOM CAPACITY AND SECTORS ON THE PRINCIPLE OF AN APPROXIMATE BALANCE OF FIFTH FREEDOM EARNINGS. INCREASES IN CAPACITY, BOTH THIRD/FOURTH AND FIFTH, WILL BE COURSE BE SUBJECT TO GOVERNMENT APPROVAL.

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.4.

A FULL REPORT WILL FOLLOW.

5.

ALL IN ALL WE REGARD THIS AS A VERY SATISFACTORY SETTLEMENT OF OUR LONG STANDING DISPUTE WITH THE THAIS, EVEN THE THAIS

SEEM TO BE WELL CONTENT.

5.

FOLLOWING THE SIGNING CEREMONY, THERE IS TO BE A JOINT PRESS RELEASE AND JOINT PRESS CONFERENCE BY THE LEADERS OF THE TWO

DELEGATIONS, TEXT OF PRESS RELEASE IN M IF T.

FCO PLEASE PASS ADVANCE TO SHOVELTON, LELLO AND GAFFIN DO T.

COLE

FILES

MAED

SEAD

HKGD

MR. BURROWS MR.MURRAY

[COPIES SENT TO CAD/DOT]

[ADVANCED AS REQUESTED]

COPIES TO:

MR.SHOVELTON)

MR.LELLO MR. GAFFIN

DOT.

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2 - CONFIDENTIAL