TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 137

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NEXT WORD UNDERLINED NOT VIA HONG KONG) TO WHICH WE BELIEVE BOT

COUNTRIES ATTACH POLITICAL IMPORTANCE,

B. WE WOULD BE HAPPY FOR ANZ TO OFFER A RECIPROCAL SERVICE ON

THE TRUNK ROUTE.

C. WHETHER NEW ZEALAND TAKES UP THAT OFFER IS A MATTER FOR NEW

ZEALAND: BUT IF THEY DECLINE IT WE SHALL NOT REGARD THIS AS A

REASON FOR GIVING ANZ A MONOPOLY ON THE ROUTE BETWEEN NEW ZEALAND

AND HONG KONG.

D. CPA SHOULD BE ALLOWED TO OFFER A RECIPROCAL SERVICE ON THAT

ROUTE IN A REASONABLE TIME SCALE AND AT A LEVEL OF CAPACITY AND

FREQUENCY WHICH GIVES THE PROSPECT OF VIABILITY.

E. WE HAVE NO WISH TO SWAMP THE HONG KONG-NEW ZEALAND ROUTE WITH CAPACITY OR TO JEOPARDISE THE VIABILITY OF ANZ'S EXISTING TWICE WEEKLY SERVICES. WE ARE THEREFORE PREPARED TO ENTERTAIN ANY

REASONABLE PROPOSALS FROM NEW ZEALAND FOR IMPLEMENTING D. BUT THIS

DOES NOT INCLUDE A MONOPOPLY BY ANZ ON THE HONG KONG/AUCKLAND

ROUTE AFTER 30 SEPTEMBER 1978.

FOR YOUR OWN INFORMATION WE DO NOT PRETEND THAT IT WILL BE EASY TO

GET AGREEMENT IN MAY. BUT WE MUST CLEARLY MAKE A DETERMINED EFFORT

TO DO SO BECAUSE TIME IS RUNNING SHORT,

4. WE HAVE TWO SPECIFIC COMMENTS ON ARCHER'S LETTER:-

1. THE NEW ZEALANDERS INDEED AGREED TO CPA OFERATING TO AUCKLAND, IN ADDITION TO BA ON THE TRUNK ROUTE (PARAGRAPH 3), BUT ONLY AFTER

ANZ HAD ACHIEVED AN ANNUAL CARRIAGE OF 50,020. THIS FIGURE WAS SO

CLEARLY UNATTAINABLE IN THE FORESEEABLE FUTURE THAT THE OFFER WAS

UNACCEPTABLE TO US.

2. THE END OF PARAGRAPH 3 REFERS TO AN ANZ MONOPOLY ON NEW

ZEALAND TRAFFIC TO QUOTE GATEWAY UNQUOTE POINTS. IN FACT SIA AND UTA

CPERATE AUCKLAND-SINGAPORE AND PAN AM AND UTA OPERATE AUCKLAND-LOS

ANGELES. WHERE ANZ COULD BENEFIT WOULD BE IF ALL UK-NEW ZEALAND AND

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VICE VERSA