TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 67

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CONFIDENTIAL

3. AS FOR THE AMOUNT OF CARGO PER FLIGHT, ONE PALLET BEING APPROXIMATELY EQUAL TO TWO TONNES, WE SHOULD PREFER THE LIMITATION TO BE FOUR TONNES BUT COULD ACCEPT SIX TONNES PER FREQUENCY AS A MAXIMUM.

4. ALTHOUGH WE ARE AWARE THAT THE CMU OF JANUARY 1973 STIPULATES

THAT NO SERVICE BE OPERATED ON LEBANESE ROUTE 2 UNLESS THE OPERATE

OF THAT SERVICE IS COVERED BY A COMMERCIAL AGREEMENT BETWEEN TMA AND BA, WE WERE NOT AWARE OF THE DETAILS OF ANY SUCH AGREEMENT AND

WE ARE SURPRISED AT THE EXTENT OF THE ROYALTY NOW PROPOSED. WE ARE

OPPOSED IN RPINCIPLE TO DANEGELD PAYMENTS OF THIS SORT, WHICH INEVITABLY INCREASE THE COST OF SHIPMENT OF GOODS TO AND FROM HONG KONG. IF ROYALTY PAYMENTS ARE TO BE MADE AT ALL, IT APPEARS TO US MORE EQUITABLE THAT WE SHOULD BE THE RECIPIENT AS THE PROVIDER OF THE FACILITIES FROM WHICH THE RIGHTS STEM RATHER THAN BA. THERE WOULD, OF COURSE, BE POSSIBLE OBJECTIONS UNDER ICAO CHARGING PRINCIPLES ON THE GROUNDS OF DISCRIMINATION AGAINST TMA. HOWEVER, WAYS ROUND THIS OBSTACLE COULD BE SOUGHT AND WE SHOULD THEREFORE WELCOME YOUR VIEWS ON THE POSSIBILITY OF OUR RECEIVING

THE ROYALTY IF YOU INSIST UPON IT BEING IMPOSED.

MACLEHOSE

FILES

MAED HKGD MED

MR.BURROWS

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