Qor
GR 220
IORITY
CYPHER CAT A
FM FCO 071108Z
CONFIDENTIAL
318
CONFIDENTIAL
HKK 18411.
JUIN 1978
OFFICIA
INDEX
PA
دلم
TO PRIORITY HONG KONG (GOVERNOR AND BCARFE) TELEGRAM NUMBER 447 OF 7 JUNE
INFO WASHINGTON
YOUR TELNO.476: IATA CONFERENCE RESOLUTION
1. ALTHOUGH PROPOSED 6% SURCHARGE ON FARES EX US DOES NOT REDRESS THE IMBALANCE AT EACH END BETWEEN UK-HONG KONG FARES, WE CONSIDER
IT ACCEPTABLE AS A LIMITED INTERIM MEASURE PENDING THE OUTCOME OF
THE CURRENT US-UK NEGOTIATIONS ON THE MATTER. WE BELIEVE THAT IT
WOULD BE PREMATURE TO TAKE UNILATERAL ACTION ON ADJUSTMENT FACTORS
ON FARES FROM HONG KONG.
2. THE 6 SURCHARGE EX US IS NOT RESTRICTED TO THE HONG KONG ROUTE.
IT IS ALSO PROPOSED FOR FARES TO BRUNEI, JAPAN, MALAYSIA, SINGAPORE, SOUTH KOREA. GIVEN THAT THE 6% IS ACCEPTABLE TO THE IATA CARRIERS
CONCERNED AND THAT UK HAS NO CARRIER ON THE ROUTES, WE CONSIDER IT
WOULD BE INAPPROPRIATE TO DISAPPROVE THE PROPOSALS AS A WHOLE.
DISAPPROVAL OF ONLY PART OF AGREEMENT AFFECTING HONG KONG IS LIKELY
TO UPSET RELATIONSHIPS WITH THOSE OTHER ROUTES AND ALMOST CERTAINLY
UNDERMINE THE TOTAL PACKAGE. FURTHERMORE, IF THE UK REJECTED THE PROPOSALS IN THESE CIRCUMSTANCES, WE CONSIDER IT WOULD ENCOURAGE
OTHER COUNTRIES TO FOLLOW OUR LEAD AND REJECT PROPOSALS WHERE THEY
HAD NO CARRIER INTEREST BUT WHERE THE UK HAD. SINCE WE CANNOT SEEK
AN ECONOMIC JUSTIFICATION FROM A BRITISH CARRIER AND HAVE NOT SEEN
ANY JUSTIFICATION SUBMITTED TO THE CAB, WE CONSIDER IT BETTER TO
LEAVE ANY DISAPPROVAL ACTION TO COUNTRIES WHOSE CARRIERS ARE DIRECTLY
AFFECTED.
OWEN
FILES
MAED
HK & GD N.A.D
MISS BROWN MR.MURRAY MR.HALL
[COPIES SENT TO CAD/DOT
COPIES TO: MR. TAYLOR
CONFIDENTIAL
CAA SPACE HOUSE
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