TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 206

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.HKK 18x/3.

GRS 750

PRIORITY

CYPHER CAT A

FM BANGKOK 220344Z OCT

CONFIDENTIAL

CONFIDENTIAL

TO PRIORITY FCO TELNO 514 OF 22ND OCT

INDEX

RFI ROUTINE HONG KONG (FOR GOVERNOR AND BCARFE)

2 4 OCT/7/

24

UK/THAI AIR SERVICES NEGOTIATIONS.

1. THE TALKS GOT OFF TO A GOOD START, HERE, THIS WEEK, ALTHOUGH THEY HAVE NOW BEEN TEMPORARILY SUSPENDED AS A RESULT OF THURSDAYS

COUP D'ETAT.

2. ROGERS OPENED THE TALKS VERY GENTLY WITH A REVIEW OF THE

OVERALL POSITION IN WHICH HE SOUGHT AS MUCH COMMON GROUND AS

POSSIBLE BEFORE PROCCEEDING TO THE CONTENTIOUS ISSUES. BOTH SIDES AGREED THAT THERE WHEERE THREE MAIN PROBLEMS, NAAMELY:

A) THE ROUTE SCHEDULES

B) CAPACITY ON THE REGIONAL ROUTES

C) CAPACITY ON THE TRUNK ROUTE

+

ROGERS POINTED OUT THAT, SO FAR, BOTH SIDES HAD DEVOTED MOST OF

THEIR RPT MOST OF THEIR ATTENTION TO THE SECOND OF THESE

PROBLEMS AND THAT A SOLUTION OF THIS WAS NOW IN SIGHT. WE THEREFORE

NOW NEEDED TO CONCENTRATE ON THE FIRST ANDTHIRD, ESPECIALLY SINCE THE LATTER HAD PREVIOUSLY BEEN LARGELY LEFT ON ONE SIDE,

CHAROEN AGREED.

3. BOTH SIDES AGREED THAT A PIECEMEAL OR TEMPORARY ARRANGEMENT WOULD NOT BE ACCEPTABLE AND THAT THE OBJECTIVE AT THIS ROUND

OF TALKS MUST BE AN OVERALL SETTLEMENT WHICH WOULD BE EXPECTED TO ENDURE FOR A NUMBER OF YEARS.

4. AS REGARDS THE TRUNK ROUTE THE AIRLINES REPORTED THAT THE TOTAL GENUINE TRAFFIC BETWEEN BANGKOK AND LONDON WAS OF THE ORDER OF 40,000 PASSENGERS A YEAR, OFWHICH BA CARRIED ABOUT 8000 AND TG ABOUT 18,000. THIS IMBALANCE WAS EXPECTED TO CONTINUE. BA SAID THAT FOR A NUMBER OF REASONS TRAFFIC BETWEEN BANGKOK

AND LONDON HAD BEEN STATIONARY FOR THE LAST TWO OR THREE YEARS

AND THEY DI NOT EXPECT ANY SIGNIFICANT GROWTH. TG ON THE OTHER

CONFIDENTIAL

/HAND