TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 154

CONFIDENTIAL

GRS 220

CHMEDIATE

IPHER CAT A.

FM FC 0 141880Z

CONFIDENTIAL

TO IMMEDIATE HONG KONG TELNO 462 OF 14 JUNE.

HKRA 184/1.

No

OUR TELNO 302 TO CANBERRA: UK/AUSTRALIA AIR SERVICES

૪] I

STRY'MO. 51

15 JUN 1978

OFFICER

PA

REGISTRY Action Taken

See 339) 407

1. WE HAVE DISCUSSED WITH THE AUSTRALIANS THE IMPLICATIONS OF

THE PROPOSALS OUTLINED IN TELEGRAM UNDER REFERENCE FOR AUSTRALIA-

HONG KONG SERVICES.

2. SO FAR AS E. AUSTRALIA-HONG KONG SERVICES ARE CONCERNED WE

CONSIDER THAT THE EFFECTS ON CPA, IF ANY, WOULD BE BENEFICIAL.

QANTAS WOULD CEASE TO OPERATE VIA MANILA AND IN CONSEQUENCE

WOULD ALMOST CERTAINLY REDUCE THEIR FREQUENCIES TO HONG KONG:

4 X 747 PER WEEK WAS MENTIONED AS A POSSIBILITY. UNTIL, THEREFORE,

CPA CONVERT TO A WHOLLY 747 SERVICE ON THIS ROUTE, THEY WOULD

HAVE A FREQUENCY ADVANTAGE WHILE RETAINING THEIR ENTITLEMENT TO

MATCHING CAPACITY.

3. ON THE HONG KONG W. AUSTRALIA ROUTE, CPA WOULD LOSE THEIR INTERMEDIATE FIFTH FREEDOM RIGHTS. THE AUSTRALIANS ESTIMATED

THAT THERE WAS PROBABLY ENOUGH END-TO-END TRAFFIC TO JUSTIFY TWO X 707 SERVICES PER WEEK. AT THE APPROPRIATE TIME CPA WOULD

HAVE TO CONSIDER WHETHER THE ROUTE WAS A VIABLE PROPOSITION ON

THIS BASIS.

4. IN ORDER TO CONSIDER HOW BEST TO REACT TO THE AUSTRALIAN PROPOSALS, WE WOULD BE GRATEFUL FOR YOUR PRELIMINARY REACTIONS TO THEM DESKBY 16880ØZ. SINCE OUR EXCHANGES WITH THE AUSTRALIANS

TEAM ARE ON A PRIVILEGED GOVERNMENT TO GOVERNMENT BASIS WOULD

YOU PLEASE NOT DISCUSS THIS WITH CPA, FOR THE TIME BEING.

OWEN

FILES

MARD SWPD SEAD HKIGA

NAD MED DEF. D.

PLANNING.

PS.

PS|MRJUDD

PS/ LORD GORONWY ROBERTS

PS/PUS SIR. A.Buff MR BUTLER MR CORTAZZI, MISS BROWN MR WEIR

MR HURRAY.

CONFIDENTIAL

+

,