TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 173

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CATCH UP A BIT. BOTH SIDES RECOGNISE THAT SUCH EXPANSION AS WILL

BE PERMITTED IN SIA'S SERVICES DURING THE PERIOD UP TO 31 MARCH

1981 UNDER THE DEAL NOW CONCLUDED FALLS SOMEWAY SHORT OF THE EXPECTED

GROWTH IN TRAFFIC AND THAT THIS WILL LEAVE ROOM FOR A HIGHER RATE OF INCREASE IN CPA'S CAPACITY AND EARNINGS (ESPECIALLY ON THE 3/4TH SECTORS AND ON INTERMEDIATE FIFTHS).

8. THERE WAS NO DISCUSSION OF THE TRUNK ROUTE AND ROGERS DECLINED

PILLAY'S ATTEMPTS TO LINK THIS DEAL ON THE PACIFIC ROUTES WITH THE

TRUNK ROUTE IN ANY WAY.

9. WE PROPOSE NOT TO SAY ANYTHING IN PUBLIC ABOUT THIS DEAL IN

ORDER TO AVOID OFFENDING SINGAPORE'S SUSCEPTIBILITIES AND WOULD

BE GRATEFUL IF ALL ADDRESSEES (AND CPA) WOULD DO THE SAME.

10. WE SHALL ASK BHC SINGAPORE SHORTLY TO CONFIRM THE ADDITIONAL

RIGHTS ON UK ROUTE 2 BY EXCHANGE OF DIPLOMATIC NOTES. NO OTHER

ACTION WITH THE SINGAPORE GOVERNMENT SEEMS NEEDED.

OWEN

FILES

MAED

HK GD SEAD

FED

NAD

MISS BROWN

MR MURRAY

MR HALL

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