CONFIDENTIAL
4. IT WAS OBVIOUS THAT WE HAD REACHED AN IMPASSE AND WE THEREFORE DEEMED IT NECESSARY TO MAKE IT CLEAR THAT IN THE EVENT NO AGREEMENT WAS REACHED FOR OPERATIONS BEYOND 30 SEPTEMBER 1978 ANZ SERVICES BETWEEN AKL AND HKG WOULD HAVE TO CEASE ON THAT DATE. IN ANTICI- PATION OF THIS POSITION BEING REACHED WE HAD PREVIOUSLY MADE A CAREFUL STUDY OF THE TERMS OF THE 1961/2 AGREED SUMMARIES OF CONCLUSIONS AND HAD REACHED THE CONCLUSION THAT WE WOULD BE
JUSTIFIED IN REQUIRING ANZ SERVICES TO CEASE IN THE EVENT OF
THERE BEING NO AGREEMENT BETWEEN THE AIRLINES AND SUBSEQUENTLY
BETWEEN THE GOVERNMENTS ON THE TERMS UNDER WHICH ANZ COULD OPERATE SERVICES ON THE ROUTE. ON THE OTHER HAND WE CLAIMED THAT
THERE WERE NO SUCH REQUIREMENTS FOR THE CONTINUANCE OF BA OPERATIONS
ON THE TRUNK ROUTE. THEY ATTEMPTED TO DISPUTE THIS BUT WERE
NOT VERY CONVINCING.
Gu
5. ROGERS SAID HE APPRECIATED THAT OUR POSITION WHICH HE
STRESSED WAS VERY FIRM - PRESENTED NEW ZEALAND WITH THE DIFFICULT
CHOICE BETWEEN ACCEPTING CPA ON THE HONG KONG-AUCKLAND ROUTE
EVEN ON A LIMITED BASIS FROM 1 OCTOBER 1978 AND CEASING THEIR
OWN SERVICES ON THAT ROUTE FROM THE SAME DATE. HE SUGGESTED THAT
MORE TIME WAS NEEDED FOR REFLECTION: AND BOTH SIDES AGREED TO
RESUME THE NEGOTIATIONS AT A SECOND ROUND, PROBABLY IN LONDON
IN MAY OR JUNE.
6. MEANTIME IT WAS AGREED THAT ANZ COULD CONTINUE TO OPERATE
2XDC10 SERVICES WEEKLY TO HKG UNTIL 30 SEPTEMBER 1978 AND THAT
BA WOULD CONTINUE ITS 2X747 SERVICES WEEKLY BETWEEN UK AND NEW
ZEALAND AS PROVIDED FOR IN CURRENT AND PLANNED SCHEDULES TO
30 SEPTEMBER 1978.
7. A JOINT PRESS RELEASE WAS AGREED, TEXT IN MIFT.
SMEDLEY
FILES MAED
ECON D
SEAD
SWPD HK & GD
MR BUTLER MR BURROWS MR THOMAS MR MURRAY
/COPIES SENT TO CAD/DOT/
"
-2- CONFIDENTIAL
No comments yet.
Private notes are available after approval.