TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 184

CYPHER CAT A

FM BANGKOK 270130Z OCT

CONFIDENTIAL

HKK 184/3. CAD BOT

RECEIVES..

1- XV

TO IMMEDIATE FCO TELNO $22 27TH OCT

36

AIR BURROWS Bukkows -MR MURRAY

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Намага

бода

Ho HGD Jul

RFI ROUTINE HONG KONG (FOR GOVERNOR AND-BCARFE HD SOND

FOLLOWING FROM ROGERS

1. 21

KM

30

30 YOUR TELNO 294 : UK/THAI AIR SERVICES

ADVANCE COPY

{ficos]

1. THE TEAM IS GRATEFUL FOR YOUR PROMPT ADVICE WHICH THEY HAVE

CONSIDERED VERY CAREFULLY,

2. IN THE POLITICAL SITUATION HERE, PARTICULARLY SINCE THE RECENT COUP,

WE CAN SEE NO POSSINILITY OF GETTING AN OVERALL SATISFACTORY

AND, WE THINK, ENDURING SETTLEMENT OTHER THAN IN THE MANNER NOW PLANNED.

3. WE WERE PLEASED TO HAVE YOUR CONFIRMATION THAT A FOOTNOTE

TO THE NEW ROUTE SCHEDULE ALONG THE LINES PROPOSED WOULD EFFECT-

-IVELY WIPE OUT THE EXCHANGE OF NOTES OF 1953 RELATING TO

THE INTERPRETATION OF THE CAPACITY CLAUSE.

4. WE NOTE YOUR RESERVATIONS ABOUT SUCH A FOOTNOTE BUT CONFIRM

THAT IT IS THE INTENTION THEREOF (AND OF THE CMU WHICH WILL BE SPECIFICALLY TIED TO IT) BOTH A. TO RESTRICT THE RIGHTS OTHERWISE

AVAILABLE TO THE THAIS IN A ROUTE SCHEDULE WHICH, FOR POLITICAL REASONS, THEY MUST BE ABLE TO CLAIM IS GENEROUS TO THEM BUT WHICH MUST BE LIMITED IN ORDER TO BE ACCEPTABLE TO US.. AND

B TO CONTROL THE CAPACITY WHICH MAY BE ROMOUNTED ON THE

ROUTES.

AS REGARDS THE FORMER, IT IS NOT UNUSUAL FOR A FOOTNOTE TO LIMIT THE AVAILABILITY OF POINTS LISTED IN A ROUTE SCHEDULE ESPECIALLY WHERE,

AS IS INTENDED IN THIS CASE, THE POINTS ARE DESCRIBED IN BROAD TERMS. IN THE LATTER RESPECT WE DO NOT CONSIDER THE

FOOTNOTE WILL ABBE IN CONFLICT WITH ART 5 OF THE ASA WHICH

LAYS DOWN THE PRINCIPLES TO BE OBSERVED BUT DOES NOT STEATE

HOW THE CAPACITY OBLIGATIONS ARE TO BE IMPLEMENTED. THE PURPOSE

OF MOST CMU'S IS TO SET OUT THE ARRANGEMENTS FOR REGULATING CAPACITY,

EVEN WHERE THE ASA CONTAINS THE OLD BERMUDA TEXT.

5. WE CONSIDERED WHETHERWE COULD ADOPT THE FOOTNOTE AS REDRAFTED

IN YOUR PARA 2 BUT THAI ATTITUDES CLEARLY INDICATED THAT WE COULD

LOSE THE WHOLE SETTLEMENT BY PRESSING FOR THE INCLUSION OF THE

WORDS QUOTE NOTWITHSTANDING ANY PROVISIONS OF THE ASA UNQUOTE AND

THE APPROPRIATENESS OF THIS SEEMS DOUBTFUL IN THE LIGHT OF

ZARE