TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 20

135)

RR HONG KONG

HONG

GR 569

CYPHER CAT A

128;

FM DOT 211958Z

CONFIDENTIAL

HKK 184/3

IN

No.

20/10

Рот (CA)

jas

H K G D

MAED

SEAD

TO ROUTINE HONG KONG (GOVERNOR) TELNO ALLOT 152 OF 21 DECEMBER. INFO HONG KONG (BCARFE), SINGAPORE.

U K/SINGAPORE AIR SERVICES

YOUR TELS 1258 AND 1279

kb.

128

ROGERS SAW LIM IN LONDON YESTERDAY AND DISCUSSED SIA'S SERVICES TO AND THROUGH HONG KONG AND ALSO CONCORDE SERVICES TO SINGAPORE. A SEPARATE REPORT ON THE LATTER IS BEING MADE TO SINGAPORE ONLY. 2. LIM HAD BEEN ON HOLIDAY FOR SOME WEEKS AND HE MAY NOT HAVE BEEN FULLY IN THE PICTURE REGARDING THE C P A RESPONSE TO THE SIA PROPOSAL FOR A JOINT SI A/C P A OPERATION ACROSS THE PACIFIC. WE TOLD HIM WE UNDERSTOOD THAT C P A HAD DECIDED NOT TO ACCEPT THE PROPOSAL AND THAT THE MATTER WAS CLOSED SO FAR AS C P A WAS

CONCERNED.

护

3. LIM INFORMED US THAT SI A WOULD GO AHEAD WITH THEIR PLANS TO MOUNT SERVICES ON THEIR MID-PACIFIC ROUTE AND THAT THEY HAD NOW (SEEMINGLY IN THE LAST DAY OR SO) ORDERED AND PAID A DEPOSIT ON TWO ADDITIONAL 747S FOR DELIVERY ON AUTUMN OF 1979. THEIR PLANS WERE TO START THE SERVICE WITH A THRICE WEEKLY DC10 IN APRIL 1979 MOVING TO A FOUR TIMES WEEKLY WITH 747S IN NOVEMBER 1979. THE ROUTE INTENDED WAS SIN-HKG-HNL-SFO (VV) WITH POSSIBLY A TECHNICAL STOP IN GUM WHILST THE DC10 WAS OPERATING.

4. ROGERS EXPRESSED SOME SURPRISE THAT SI A HAD FIRMED UP ON THEIR ORDER FOR THE 747S WITHOUT ASCERTAINING WHAT THE U K POSITION WOULD BE REGARDING SERVICES BY SI A THROUGH HONG KONG TO THE US A. HE REMINDED LIM THAT WE HAD TOLD SI A THAT WE WOULD EXPECT THEM TO STAND STILL ON EARNINGS IN THE REGION UNTIL C P A HAD CAUGHT UP. THERE WAS STILL A LONG WAY TO GO IN THE CATCHING-UP BEFORE WE COULD RELAX ON THIS. IF THEREFORE S A WANTED TO MOUNT HKG-U S A SERVICES HE WOULD EXPECT THEM TO MAKE COMPENSATING REDUCTIONS ELSEWHERE, THE MOST OBVIOUS AREA BEING THEIR SERVICES OVER HKG TO JAPAN.