TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 227

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CYPHER CAT A

FM HONG KONG 12075øZ

CONFIDENTIAL

TO ROUTINE F C O TELNO 1021 OF 12 OCTOBER 1977

INFO SINGAPORE.

BAR

DOT TELNO ALLOT 5: UK/SINGAPORE AIR SERVICES

ACCORDING TO A PRESS REPORT FROM THE STRAITS TIMES OF 27 SEPTEMBER, SINGAPORE AND THE USA HAVE REACHED AGREEMENT PERMITTING SIA TO FLY

TO SAN FRANCISCO THREE TIMES WEEKLY VIA HONG KONG, GUAM AND

HONOLULU. PROVISION IS MADE FOR SIA TO INCREASE ITS FLIGHTS TO

FOUR WEEKLY IN APRIL 1979 AND TO FIVE WEEKLY IN APRIL 1989. SIA

HOPES TO INAUGURATE SERVICES TOWARDS THE END OF 1978.

2. CPA ARE WORRIED ABOUT THE GROWING IMBALANCE OF EARNINGS IN

FAVOUR OF SIA BECAUSE OF THEIR VAST FIFTH FREEDOM RIGHTS AND

HIGH SEAT FACTORS. ALTHOUGH IDEALLY THE SOLUTION IS FOR CPA TO

BUILD UP THEIR RIGHTS, WE RECOGNISE THE DIFFICULTIES INVOLVED.

IN VIEW OF THIS AND THE FACT THAT SIA HAVE PREVIOUSLY BEEN TOLD

THAT THEIR CAPACITY TO AND THROUGH HONG KONG SHOULD BE FROZEN UNTIL CPA HAVE CAUGHT UP SOMEWHAT, IT WOULD SEEM TIMELY TO REMIND SIA OF THIS. A POSSIBLE CONDITION UNDER WHICH THEY COULD BE GIVEN

THE OPTION OF TAKING UP THE US RIGHTS WOULD BE REDUCTION OF THEIR

PRESENT DAILY SIN/HKG/TPE/TYO V.V. SERVICES TO FOUR TIMES

WEEKLY.

MACLEHOSE

FILES

MAED

SEAD

HRGD

NAMD

MR BURROWS

MR MURRAY

Геор

[COPIES SENT TO

CADIDOT

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