TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 180

GPS 400A

IMMEDIATE

DESKBY 280230Z

CYPHER CAT A

FM F C 0 27195ØZ

CONFIDENTIAL

DESKBY 280 200Z

CONFIDENTIAL

TO IMMEDIATE BANGKOK TELNO 297 OF 27 OCTOBER

INFO HONG KONG (GOVERNOR AND BCARFE)

YOUR TELNO 522.

UK/THAI AIR SERVICES.

39

RA

HKK 15+/3.

No

af

1. THE DIFFICULTIES SET OUT IN OUR TEL NO 294 PARA 3 REMAIN, IF THE FOOTNOTE IS IN THE FORM QUOTED IN PARA 5 OF TUR TO COVER ALL POINTS ON ALL THE ROUTES IN THE SCHEDULE, THE EFFECT IS THAT NO RIGHTS ARE GRANTED FOR ANY ROUTES. SUCH RIGHTS ONLY ARISE ON SUBSEQUENT AGREEMENT AS TO THE ROUTES.

2. ACCORDINGLY, WITH REFERENCE TO THE QUOTE ENDURING SETTLEMENT UNQUOTE THE PROPOSAL IS TO REPLACE THE GRANT OF RIGHTS BY A NON-BINDING AGREEMENT ON THE ROUTES TO BE OPERATED. NEITHER PARTY WOULD HAVE A RIGHT TO ANY ROUTE AND ANY NEW GOVERNMENT WOULD NOT BE BOUND TO GRANT ANY ROUTES TO THE OTHER PARTY,

3. YOUR PARA 3. THE PROPOSED FOOTNOTE WOULD SUPPLANT THE 1953 EXCHANGE BECAUSE THE EXISTING CAPACITY CLAUSE WOULD BE DEPRIVED OF ITS FORCE AND THE CAPACITY WOULD ONLY BE SUCH AS 13 AGREED

BY THE AERONAUTICAL AUTHORITIES,

4. THE LAST TWO SENTENCES OF YOUR PARA 4. THE EFFECT OF THE FOOTNOTE IS TO REPLACE REGULATION OF CAPACITY ON THE BERMUDA PRINCIPLES BY AGREEMENT AS TO CAPACITY BY AERONAUTICAL AUTHORITIES. THIS IS NOT THE SAME AS REGULATING CAPACITY IN A CMU IN CASES WHERE THE ASA HAS THE BERMUDA TEXT, BECAUSE IN THESE CASES THE

CONFIDENTIAL

/BERMUDA TEXT

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