TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 180

597

GR 285

IMMEDIATE

DESKBY 078908Z

CYPHER/CAT A

FM HONG KONG 070845Z

CONFIDENTIAL

CONFIDENTIAL

HKK184/L

INDEX

-1!!N

!!!N 1978

OFFICER

No

TO IMMEDIATE F.C.O TELNO.700 OF

7 JUNE 78,

JUNE

DESKBY @70900Z

stion Teken,

INFO SINGAPORE AND HONG KONG GOVT OFFICE LONDON.

311

SINGAPORE TELNO.189 TO FCO AND DOT TELNO.ALLOT 93/ī

U.K/SINGAPORE AIR SERVICES.

317

ait agreed

Lee/322

1. OUR VIEWS ON THE PROPOSED PACKAGE DEAL WITH SIA REMAIN AS

SET OUT IN OUR TELNO.661 OF 26 MAY.

2. AS WE HAVE INDICATED, THE PACKAGE IN FACT PROVIDES AN INCREASE IN SIA'S FIFTH FREEDOM EARNINGS THROUGH HONG KONG. WE ARE THEREFORE ~

MOST DEFINITELY OPPOSED TO FURTHER IMPROVEMENTS AS SOUGHT BY LIM.

IN PARTICULAR, WE CERTAINLY COULD NOT AGREE TO THEM CONTINUING TO

OPERATE THREE SERVICES PER WEEK TO OSAKA ONCE THEIR TRANS-PACIFIC

SERVICE COMMENCES. IN FACT, THIS WOULD GIVEM THEM AN INCREASE IN CAPACITY IF THEY WERE TO OPERATE THREE 747'S AGAINST THEIR EXISTING DAILY 707 SERVICE.

3. NOR ASE WE AGREEABLE TO THEM STARTING WITH FIVE SERVICES TRANS- PACIFIC IN FEBRUARY, AS AGAINST THEIR PREVIOUSLY INDICATED FOUR, IF THEY WISH TO START WITH FIVE SERVICES, WE WOULD EXPECT THEM TO BE FURTHER CUT BACK IN THE REGION. THIS COULD BE IN THE FORM OF THEIR DROPPING THEIR THREE HONG KONG/TAIPEI/TOKYO SERVICES, OR ABANDONING THEIR BANGKOK/HONG KONG ROUTE.

4. FINALLY, WE COULD NOT AGREE TO ANY COMMITMENT NOW BEYOND FIVE

TRANS-PACIFIC SERVICES. IF AND WHEN SIA WISHED TO MOVE TO A DAILY

TRANS-PACIFIC SERVICE, THEN WE WOULD EXPECT THEM TO COME BACK TO THE U.K FOR CLEARANCE WHICH SHOULD, WE BELIEVE, INVOLVE FURTHER

REDUCTIONS IN THE REGION AT THAT TIME.

MACLEHOSE

FILES

MAED SEAD HK & GD

MISS BROWN MR BUTLER MR CORTAZZI MR MURRAY

[COPIES SENT TO CAD/POT]

CONFIDENTIAL

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