TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 171

C

CONFIDENTIAL

Hkk 184./1..

GR 900

PRIORITY

RECEIVE

CYPHER CAT A

AND BY BAG

FM FCO 081818Z

CONFIDENTIAL

9 JUN 1978

Cleared withh

DESK OFFICER

RA

NEGISTRY

Action Takan

INDEX

No

we

ра

TO PRIORITY HONG KONG (GOVERNOR AND BCARFE) TELNO 449 OF 8 JUNE

AND TO SINGAPORE.

INFO SAVING KUALA LUMPUR, BANGKOK, TOKYO, WASHINGTON.

997

317

322

1394

OUR TELNO 373, HONG KONG TELNOS 661 AND 700 AND SINGAPORE TELNO 189: UK/SINGAPORE AIR SERVICES.

1. PILLAY AND LIM CALLED AGAIN ON DOT YESTERDAY. DISCUSSIONS LASTED ALL DAY AND THERE WAS SOME HARD BARGAINING BUT AT THE END OF THE DAY AN UNDERSTANDING WAS REACHED WHICH WAS EMBODIED IN AN AGREED LETTER FROM ROGERS TO PILLAY (COPIES BY BAG). THIS UNDERSTANDING COVERS THE PERIOD UP TO 31 MARCH 1981.

2. AS FORESHADOWED IN SINGAPORE TEL 189 THE MAIN ARGUMENTS CENTRED

ROUND SIA'S WISHES:-

A. TO RETAIN 3XDC10 SERVICES WEEKLY BEYOND HONG KONG TO OSAKA AFTER THEY HAD INTRODUCED THEIR TRANSPACIFIC SERVICES:

B. TO GET A COMMITMENT FROM US TO THEIR EVENTUALLY MOUNTING A

DAILY 747 SERVICE ACROSS THE PACIFIC.

3. DOT MADE IT VERY CLEAR THAT THEY COULD ONLY HAVE A. IF THEY GAVE UP SOMETHING OF AT LEAST EQUAL VALUE. IN THE END IT WAS AGREED THAT IF, FOLLOWING THE INTRODUCTION OF THEIR TRANSPACIFIC SERVICES, WITH THE CONSEQUENT REDUCTION OF OTHER SERVICES, THEY WISHED TO CONTINUE TO OPERATE 3XDC10 PER WEEK BEYOND HONG KONG TO OSAKA, THEN FOR SO LONG AS THEY DID SO THEY WOULD BE DEBARRED FROM UPLIFTING

ANY HKG-TYO VV TRAFFIC ON ALL REPEAT ALL OF THEIR DAILY 747 SERVICES

SIN-HGK-TPE-TYO.

CONFIDENTIAL

14.