TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 165

3/0

GR 365

IMMEDIATE

CYPHER/CAT A

CONFIDENTIAL

Rebufa

1.J! IN 1978

DEX OFFICER

INDEX

PA

No

Ranted 320

ress-

all

за

do we know

on then us/ok talks ?

20. 51

REGISTRY

¡Action Teken

Jucuned.

لليه

Tel-cult

Зен

Seef BCH

fu

2

FM HONG KONG 0907072

CONFIDENTIAL

TO IMMEDIATE F.C.0 TEL NO.710 OF 9 JUNE 78,

INFO WASHINGTON, HONG KONG GOVERNMENT OFFICE LONDON.

YOUR TELNO.442 : AIR CARGO RATES.

1. PILOTS OF NORTHWEST ORIENT AIRLINES ARE STILL ON STRIKE AND THERE HAVE BEEN NO NW FLIGHTS SINCE 29 APRIL. THE LOCAL NWO MANAGER ADVISES THAT THERE IS PRESENTLY A GREAT DEMAND FOR CARGO SPACE, WHICH HE EXPECTS TO BE THE SITUATION FOR THE REST OF THE YEAR AT LEAST, AND THAT DEMAND WILL INCREASE IF THE LOOMING U.S WEST COAST STRIKE SHOULD BECOME A REALITY ON 1 JULY. UNDER THESE CIRCUMSTANCES NWO CONSIDER THAT ANY MOVE ON THEIR PART TO FILE NEW SELLING RATES AS SUGGESTED IN PARA.1 OF TEL UNDER REF TO BE OUT OF THE QUESTION.

2. PAN AMERICANS' REGIONAL DIRECTOR STATES THAT PAA ARE CONCERNED AT THE LOW CARGO YIELDS ON THE HKG-USA ROUTE BUT WOULD WELCOME A

MORE REALISTIC ALIGNMENT OF THE IATA EXCHANGE RATE PROVIDED GOVERNMENT WOULD CONCEDE TO A CORRESPONDING INCREASE IN TARIFF

RATES.

3. FLYING TIGER LINE LIKEWISE CLAIM THAT YIELDS ON THE ROUTE ARE

ON THE BOTTOM LINE, HENCE THEIR FILING OF 5 MAY TO CAA FOR A TWELVE PERCENT INCREASE IN SPECIFIC COMMODITY RATES. THE CAA HAVE ALREADY BEEN ADVISED OF THE REASONS OF OUR OBJECTION TO THE FILING.

CONFIDENTIAL

14.

IN

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