TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 142

GR 200

PRIORITY

PHER CAT A

FM FCO 191200Z

CONFIDENTIAL HKK.184/1

RECEIVED

21 JUN 1978

DENK OFFICER

INDEX

PA

Adjon Teken'

CONFIDENTIAL

Jo

TO PRIORITY HONG KONG TELNO 472 OF 19 JUNE

AND TO ROUTINE TEL AVIV

327

342

Cleared with me бер

Seel 385

YOUR TELNO 720: CARGO AIRLINES LTD.

1. WE ARE CONCERNED AT THE POSSIBLE AIR SERVICES CONSEQUENCIES IF THE UK IS INCLUDED IN QUOTE WESTERN EUROPE UNQUOTE (YOUR PARA 1)

2. CARGO AIR LINES HAVE RECENTLY BEEN GIVEN APPROVAL BY THE DOT

TO OPERATE UP TO THREE WEEKLY FREIGHT CHARTER FLIGHTS TEL AVIV- LONDON AND VV. APPLICATIONS WILL BE REQUIRED FOR THE INDIVIDUAL

FLIGHTS AND DOT HAVE IMPOSED A NUMBER OF CONDITIONS DESIGNED TO PROTECT THE SCHEDULED SERVICES. HOWEVER, THESE CONDITIONS DO NOT INCLUDE A REQUIREMENT THAT ULTIMATE ORIGIN/DESTINATION OF CARGO SHOULD BE ISRAEL, AND THERE IS CLEARLY NOW A POSSIBILITY THAT CAL WILL BE ABLE TO CARRY UK/HONG KONG FREIGHT BY A COMBINATION

OF THE RIGHTS GIVEN BY THE UK AND HONG KONG. THIS POSES A THREAT TO EXISTING SERVICES ON THAT SECTOR (BOTH SCHEDULED AND CHARTER).

3. DOT HAS ASKED CAL (VIA EL AL, WHO MADE THE APPLICATION ON CAL'S BEHALF) TO CONFIRM THAT THEY WILL NOT CARRY UK-HONG KONG FREIGHT

ON THESE CHARTER FLIGHTS, IDEALLY WE SHOULD HAVE LIKED TO CONFINE

THEM COMPLETELY TO UK/ISRAEL BUT WE DO NOT BELIEVE THIS TO BE

PRACTICABLE.

4. WE SHOULD BE GRATEFUL IF YOU COULD WITHHOLD ANY APPROVAL FOR

CAL UNTIL WE ADVISE YOU OF DEVELOPMENTS FOLLOWING DOT APPROACH

TO CAL, WHICH HAS NOT YET BEGUN TO OPERATE TO UK.

OWEN

FILES

MAED

[COPIES SENT TO

CAD [DOT]

NENAD HKOGD

MISS BROWN

CONFIDENTIAL

12

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