TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 136

CONFIDENTIAL

4. WITH REGARD TO THE COMPARATIVE EARNINGS ON THE HKG/TYO VV SECTOR FOR GIA AND ON THE SIN/JKT VV SECTOR FOR CPA, WIWEKO HAS NOT TO DATE TALKED IN TERMS OF A DAILY DC-10 OPERATION ON HKG/TYO

•

IN FACT, THREE SERVICES ONLY HAVE BEEN MENTIONED. ON THE SIN/JKT VV SECTOR, WHILE A SEATING RESTRICTION IS MOST PROBABLE UNTIL THE ADVENT OF GIA'S DC-10'S ON THE JKT/HKG/TYO VV ROUTE, FROM THAT TIME CPA UNDERSTAND THAT THE SECTOR SEATING RESTRICTION WOULD BE LIFTED. IT SHOULD ALSO BE REMEMBERED THAT CPA OPERATE PER/JKT VV AND KUL/JKT VV.

5. AS REGARDS THE DIFFICULTIES FORESEEN BY STUART (JAKARTA TELNO ALLOT1) IN MAKING A FORMAL APPROACH TO THE INDONESIANS, WE CAN UNDERSTAND SUSPICIONS BEING AROUSED BY WIWEKO'S GENEROUS OFFER. HOWEVER, BLUCK BELIEVES THERE WOULD HAVE BEEN NO POINT IN WIWEKO SPENDING SO LONG IN DISCUSSING DETAILS OF AN AGREEMENT IF HE INTENDED TO ENSURE THAT IT WAS FRUSTRATED LATER. WE THEREFORE FEEL THAT AN EARLY FORMAL APPROACH SHOULD BE MADE TO THE INDONESIANS TO FOLLOW UP THE BLUCK/WIWEKO DISCUSSIONS. GIVEN THE IMPORTANCE OF THE ISSUE TO CPA, A VISIT BY BCARFE WOULD SEEM TO BE APPROPRIATE.

MACLEHOSE

FILES

MAED

HK & GD

SEAD

MR BURROWS

MR MURRAY

[COPIES SENT TO CAD/DOT]

2

CONFIDENTIAL