00 GOVERNOR HONG KONG
RR BCARFE HONG KONG
GPS 300
CYPHER CAT A
FM DOT Ø11500Z
CONFIDENTIAL-
G. $KK 184/1
H.K. & G.Akk
HICGO
A
ARX
166
1973
See .67
67&
TO IMMEDIATE GOVERNOR HONG KONG TELNO ALLOT 23 OF 1 FEBRUARY INFO BCARF HONG KONG KUALA LUMPUR.
59
60
YOUR TELNO 128 OUR ALLOT 19 AND BCARFE'S ALLOT 5 RE FIRST TUR, PRESENT ROUND OF TALKS IS NOW COMPLETE AND MALAYSIANS ARE, WE HOPE,
! REFLECTING ON THE POSITION. IT SEEMS UNLIKELY THAT THEY WILL ACCEPT THE PACKAGE WE HAVE PUT TO THEM BUT WE ARE WAITING FOR THEIR ANSWER.
2. SINCE MALAYSIANS HAVE SAID OFFICIALLY THAT THEY DO NOT WISH TO RE-NEGOTIATE THE CMU THERE SHOULD BE NO DIFFICULTY IN CPA NOW PROCEEDING WITH THE NEW SERVICES AVAILABLE TO THEM THERE-UNDER. WE THEREFORE SUGGEST THAT CPA BE SO INFORMED UNLESS KUALA LUMPUR EXPRESS STRONG OBJECTION BY CLOSE OF PLAY (YOUR TIME) FRIDAY 3 FEBRUARY.
3. RE SECOND AND THIRD TUR. YOU WILL HAVE REALISED THAT THESE TELEGRAMS CROSSED. MAS ARE ENTITLED TO THREE SERVICES A WEEK KOTA KINABALU-HONG KONG UNDER PARA 3(B) OF THE CMU OF 11 JANUARY 1973 AND NO AIRCRAFT TYPE IS SPECIFIED EITHER THERE OR IN ANY OTHER SIMILAR DOCUMENT, ALTHOUGH SUB-PARAS 5(A) AND (B) OF ANNEX C TO THE AGREED RECORD OF 21 APRIL 1977 CLEARLY RECORD THE MALAYSIAN VIEW THAT MAS SERVICES WILL BE BY B737. WHILE ROGERS' LETTER OF 29 SEPTEMBER 1976 TO MAHADZAR COULD BE PRAYED IN AID OF REFUSING PERMISSION FOR THE INCREASE IN CAPACITY REPRESENTED BY B707 S ON THIS ROUTE IT WOULD BE A BIT THIN SINCE THE MAIN DRIVE OF THAT LETTER REFERRED TO WEST MALAYSIA-HONG KONG AND BEYOND CAPACITY. MOREOVER, SINCE THE LOSS OF A B 737 IN THE HIJACK IS BEING GIVEN AS THE REASON WE WOULD RUN THE RISK OF LOOKING OBDURATELY UNSYMPATHETIC IF WE NOW REFUSE.
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