TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 141

186

GR 400 IMMEDIATE

CYPHER/CAT A

192

CONFIDENTIAL

HKK 184/1

- 5 APR 2978

PA

No

f

Teken

FM HONG KONG Ø41015Z

CONFIDENTIAL

TO IMMEDIATE F.C.O TELNO.423 OF 4 APRIL 78,

INFO PRIORITY: SEOUL AND HONG KONG GOVT OFFICE LONDON.

FOLLOWING FOR D.O.T.

FOR STABLES.

BCARFE TELNO.ALLOT 2 U.K/KOREA AIR SERVICES.

1. THE FURTHER BRIEFING MEETING REFERRED TO IN THE TEL UNDER REF

TOOK PLACE ON 3 APRIL ATTENDED BY BCARFE AND CPA REPRESENTATIVES. THE LETTERS BCARFE/STABLES (DOT) OF 28 FEBRUARY AND STABLES/BCARFE ( OF 20 MARCH WERE USED AS A BASIS FOR DISCUSSION.

2. IT WAS GENERALLY AGREED THAT ALTHOUGH THE KAL ESTIMATE OF 46,000 PASSENGERS IN 1978 WAS VERY MUCH ON THE HIGH SIDE, THE

POTENTIAL TRAFFIC WAS SUBSTANTIAL AND WOULD BE OF CONSIDERABLE BENEFIT TO THE HONG KONG ECONOMY. ACCORDING TO CPA INFORMATION THE RATIONALE BEHIND THE PROPOSAL IS THAT KAL CURRENTLY EXERCISE STOPOVER RIGHTS FOR THIS TRAFFIC AT MANILA BUT WILL LOSE ALL

AN TRAFFIC RIGHTS BETWEEN SAUDI ARABIA AND MANILA FROM 1 MAY.

ALTERNATIVE MUST BE SOUGHT AND HONG KONG IS THE LOGICAL CHOICE IF STOPOVER RIGHTS CAN BE GAINED.

3. THE MEETING CONSIDERED WHAT COUNTER-CONCESSION MIGHT USEFULLY BE SOUGHT BUT DECIDED AGAINST THIS IN VIEW OF THE TIME-SCALE OF A SIX MONTH APPROVAL AND THE WARNING NOTE SOUNDED IN THE BCARFE LETTER OF 28 FEBRUARY, OF THE DANGER OF OPENING UP A MAJOR CAN OF WORMS. IF THERE WOULD BE LITTLE OR NO DAMAGE TO BRITISH AIRLINES EITHER ON THE JEDDA/HONG KONG SECTOR OR THE HONG KONG/ SEOUL SECTOR, WHICH WOULD APPEAR TO BE THE POSITION, THEN THERE IS ADVANTAGE IN GAINING KOREAN GOODWILL IN THE PROCESS OF BENEFITTING HONG KONG'S WIDER INTERESTS.

CONFIDENTIAL

14. THIS