TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 85

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TO PRIORITY F.C.O TELNO.1239 OF 8 DECEMBER 77,

INFO PRIORITY: AUCKLAND AND PORT MORESBY.

U.K/NEW ZEALAND AIR SERVICES.

1. BLUCK OF CPA VISITED AUCKLAND AND SYDNEY LAST WEEK AND THE FOLLOWING IS A REPORT ON HIS DISCUSSIONS WITH DAVIS (GENERAL MANAGER OF AIR NEW ZEALAND) AND GREY (GENERAL MANAGER OF AIR NIUGINI).

2. THE VIEWS OF AIR NEW ZEALAND CULLED FROM DAVIS CAN BE

SUMMARISED AS FOLLOWS:

(A) AIR NEW ZEALAND DO NOT OBJECT TO DOUBLE DESIGNATION ON THE PART OF U.K SUBJECT TO THERE BEING PRE-DETERMINATION OF

CAPACITY:

(B) THEY HAVE NO OBJECTION IN PRINCIPLE TO CPA OPERATING

HOWEVER HONG KONG/PORT MORESBY/AUCKLAND WITH FULL RIGHTS. THEY WOULD BE LOOKING FOR AN ITEM OF RECIPROCAL VALUE IN AN OVERALL AGREEMENT:

(C) THE ONLY FIFTH FREEDOM RIGHTS EX HONG KONG TO BE SOUGHT BY AIR NEW ZEALAND WOULD BE HONG KONG/TOKYO AND

(D) AIR NEW ZEALAND IS NOT AVERSE TO SOME FORM OF COMMERCIAL COOPERATION WITH CPA.

3. AT THE MEETING WITH GREY WHICH TOOK PLACE IN SYDNEY, BLUCK REPORTS THAT GREY SEEMED VERY RELAXED CONCERNING CPA'S ASPIRATIONS TO OPERATE THROUGH PORT MORESBY TO AUCKLAND. SIMILARLY GREY INDICATED THAT THEY WOULD EXPECT RECIPROCAL FIFTH FREEDOM RIGHTS TO AIR NIUGINI BUT BLUCK HAS NOT REPORTED WHAT THESE MIGHT BE. GREY WILL BE CONSULTING HIS GOVERNMENT AND HOPES TO HAVE SUGGESTIONS IN MIND WHEN BCARFE VISITS NEW GUINEA LATER THIS MONTH.

4. ON THE WHOLE IT APPEARS THAT, FROM THE AIRLINE POINT OF VIEW, WE NEED NOT ANTICIPATE SEVERE DIFFICULTIES IN REACHING AN AGREEMENT WITH AIR NEW ZEAL AND OR WITH AIR NIUGINI.