TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 193

HKY EDH Jales

RR HONG KONG

нка 1841

5 JAN 1973

GR 230

CYPHER CAT A

A

See

Tal

FM D O T 241603Z

CONFIDENTIAL.

TO ROUTINE HONG KONG (GOVERNOR) TELNO ALLOT 16 OF 24 JANUARY INFO BCARFE HONG KONG, SINGAPORE, CANBERRA,

UK/SINGAPORE AIR SERVICES.

3

YOUR TELNO 76 OF 19 JANUARY.

WE ARE STILL CONSIDERING WITH BA WHETHER THEIR FUTURE PATTERN OF OPERATIONS TO AUSTRALIA WOULD FIT IN WITH CPA COMING ON TO THE SIN-PER SECTOR.

2.

WE HAVE NOW HAD RESPONSE FROM LIM TO STABLES' LETTER OF 3 JANUARY ABOUT SIA'S TRANS-PACIFIC FREIGHTER SERVICE. THIS, TOGETHER WITH OUR REPLY IS BEING SENT TO YOU BY BAG. ON THE FACE OF IT SIA'S PROPOSAL FOR FREIGHTER SERVICES SEEMS ACCEPTABLE. HOWEVER, WE UNDERSTAND VERBALLY FROM CHAN SIA'S REGIONAL DIRECTOR IN LONDON, THAT SIA'S CONSIDERED RESPONSE TO ROGERS' STATEMENT AT THE DISCUSSION WITH LIM ON 20 DECEMBER (REPORTED IN ALLOT 152) THAT SIA WOULD HAVE TO MAKE COMPENSATING SAVINGS IN PAX SERVICES ELSEWHERE IF THEY WANTED TO MOUNT TRANSPACIFIC PAX SERVICES IS THAT THEY ARE NOT PREPARED TO MAKE ANY REDUCTIONS. WE HAVE NOT YET THEREFORE ACCEPTED THE SIA FREIGHTER PROPOSALS BUT HAVE SAID THAT WE WILL CONSIDER THEM WITH A VIEW TO REACHING AN EARLY CONCLUSION WHEN WE MEET AGAIN WITH LIM TO DISCUSS THE SIA RESPONSE TO ROGERS' STATEMENT ON 20 DECEMBER.

3. WE WOULD BE GLAD TO KNOW AT THE EARLIEST WHAT CPA'S CONSIDERED RESPONSE IS TO SIA'S LATEST PROPOSAL FOR JOINT OPERATIONS ACROSS THE PACIFIC.

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