TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 200

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ATTENTION TO THE TREATMENT HE HAD BEEN FORCED TO METE OUT

PAPUA NEW GUINEA UNTIL THEY REALISED THE VULNERABILITY OF THEIR OVERFLIGHTS: AND HE CONCLUDED BY SAYING THAT HE HOPED

(A CLEAR ENOUGH REFERENCE TO CONCORDE ISSUE) THAT WE WOULD NOT

DRIVE INDONESIA INTO THE ARMS OF MALAYSIA.

3. HE THEN PROPOSED AN INTERIM DEAL FOR SIX MONTHS FROM 1 APRIL LINKED TO A FURTHER FORMAL CONSULTATION TO BEGIN IN HONG KONG

AROUND 10 JUNE. THERE WERE COMPELLING REASONS WHY NEITHER HE NOR

KARDONC COULD MANAGE AN EARLIER DATE. HE THEN PROPOSED THAT FROM 1 APRIL GARUDA SHOULD OPERATE 7 DC10S JAKARTA-HONG KONG AND 3 DC13S BALI-HONG KONG-TAIPAI-TOKYO. ALL THESE SERVICES WOULD

OPERATE AT FULL CAPACITY AND WITH FULL FIFTH FREEDOM RIGHTS.

IN RETURN HE OFFERD CPA 7 TRISTARS AT FULL CAPACITY ON HONG-

KONG- SINGAPORE- JAKARTA WITH UNAGGREAGATED ABILITY TO CARRY

53 PASSENGERS PER FLIGHT. CPA MIGHT CONTINUE TO OPERATE 3 BOEING

797S AT FULL CAPACITY WITH FULL TRAFFIC RIGHTS ON HONG KONG-

KUALA LUMPUR-JAKARTA-PERTH.

4. WE NATURALLY RESISTED THIS OFFER THROUGHOUT THE NEGOTIATIONS, AND DEPLOYED ALL THE ARGUMENTS SET OUT IN PRECIOUS CORRESPONDENCE

AND TELEGRAMS. RISAKOTTA MADE VARIOUS POINTLESS GESTURES

DESIGNED TO MASK THE FACT THAT NO MEANINGFUL NEGOTIATIONS

COULD TAKE PLACE. HIS FINAL OFFER WAS THAT FRKMMTQ APRIL GARUDA

SHOULD HAVE 7 DC10S JAKARTA-HONG KONG AND 3 DC10S BALI-HONG KONG-

TOKYO AT FULL CAPACITY AND WITH FULL RIGHTS. IN RETURN CPA

COULD

HAVE 7 TRISTARS AT FULL CAPACITY ON HONG KONG-SINGAPORE-JAKARTA,

WITH AN UNAGRGREGATED 50 PASSENGERS PER FLIGHT ON SINGAPORE -

JAKARTA, NO CARGO AND NO OWN STOP OVER COULD BE CONCEDED. CPA

COULD ALSO HAVE 3 BOEING 707S ON HONG KONG-KUALA LUMPUR-JAKARTA-

-PERTH AT FULL CAPACITY AND WITH FULL RIGHTS. THESE 3 SERVICES

COULD BE CONVERTED TO 3 TRISTARS ON EITHER HONG KONG -KUALA

LUMPUR-JAKARTA-PERTH OR HONG KONG-KUJAKARTA FROM 1 APRIL

1989. HE CONFIRMED THE OFFER OF FORMAL, CONSULTATIONS IN HONG KONG AROUND 10 JUNE, AND AGREED THAT HIS OFFER (IF ACCEPTED) WOULD

REMAIN VALID IF IT IN PRACTICE PROVED IMPOSSIBLE TO MEET BEFORE 1 OCTOBER. IF THAT CONSULTATION TOOK PLACE BUT NO AGREEMENT

COULD BE REACHED, HE WAS PREPARED EITHER FOR THE INTERIM DEAL. TO

2.-

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