TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 94

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1978

REGISTRY Action Taken

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FM WELLINGTON 240505Z

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TO ROUTINE F C O TELNO 144 OF 24 APRIL 1978 INFO GOVERNOR HONG KONG, BCARFE HONG KONG.

YOUR TEL 39: UK/NZ AIR SERVICES TALKS.

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1. I PROPOSE TO MENTION TALKS TO MR TALBOYS, THE NEW ZEALAND MINISTER OF FOREIGN AFFAIRS, WHEN I SEE HIM EARLY NEXT WEEK.

MEANWHILE HEAD OF CHANCERY HAS GONE OVER GROUND IN DETAIL WITH MFA OFFICIALS AS WELL AS WITH EDWARDS AND HEALY OF MINISTRY OF

TRANSPORT.

2.

ARCHER STRESSED THAT CASE FOR RECIPROCITY FROM HONG KONG ON THE HK/NZ ROUTE AND FOR DIRECT BRITISH AIRWAYS SERVICE TO AUCKLAND WERE SEPARATE. HE URGED MFA TO ENSURE THAT NZ BRIEF FOR LONDON TALKS TOOK INTO ACCOUNT POLITICAL REALITIES AS WELL AS COMMERCIAL FACTORS. MFA APPEARED TO ACCEPT THAT LATTER HAD BEEN GIVEN UNDUE PROMINENCE IN WELLINGTON ROUND OF DISCUSSIONS AND THAT NZ SIDE HAD PUT FEW IF ANY REALISTIC COUNTER-PROPOSALS ON THE TABLE. IN ADDITION TO INFLUENCING BRIEFING MFA HOPE TO BE REPRESENTED AT LONDON TALKS (PROBABLY BY GRANT, THE MFA OFFICIAL PRESENT AT WELLINGTON TALKS. HE IS CURRENTLY WORKING IN GENEVA AT THE LAW OF THE SEA CONFERENCE AND WOULD FLY OVER TO LONDON TO JOIN EDWARDS).

3. IN INFORMAL DISCUSSION WITH HEALY ARCHER SAID THAT WE HOPED NEW ZEALAND SIDE WOULD NOT NEED TO GO OVER OLD GROUND IN LONDON

AND THAT NEW ZEALANDERS COULD RESPOND TO PROPOSALS TABLED BY

BRITISH SIDE FOR LINKING ACCESS FOR CATHAY PACIFIC TO INCREASING PASSENGER TRAFFIC. -HEALY SAID THAT PROBLEM WAS THAT ANZ WERE ADAMANT THAT AT LEAST TWO YEARS WAS NEEDED TO WORK UP SUFFICIENT TRAFFIC TO MAKE THEIR EXISTING SERVICES SHOW A REASONABLE PROFIT. SOME OF THEIR MANAGEMENT WERE EVEN SUGGESTING WITHDRAWING FROM THE ROUTE. THEY HAVE CURRENTLY MOUNTED A BIG INTERNAL ADVERTISING CAMPAIGN. RESULTS WILL AFFECT COMPANY ATTITUDE TO FUTURE SPENDING. HOWEVER EVEN APART

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