GR 430
IMMEDIATE
CYPHER CAT A
FM HONG KONG 061025Z
CONFIDENTIAL
HKK 184
REVEC
*** *0.57 Await for
- IN 1978
DAK OFFIC INDEX
No
PA
*
+
reply
·PA
355
See 331
CONFIDENTIAL
TO IMMEDIATE F C O TELNO 697 OF 6 JUNE 1978
مه
INFO IMMEDIATE BERNE, ROUTINE HONG KONG GOVERNMENT OFFICE LONDON.
YOUR TELNO 430: UK/SWITZERLAND AIR SERVICES TALKS.
WITH REGARD TO PARA 1 OF YOUR TELEGRAM, OUR POSITION IN RESPECT OF THE USE OF KAI TAK IS THAT WIDER HONG KONG INTERESTS SHOULD PREVAIL OVER THOSE OF AN AIRLINE WHEN THESE ARE IN CONFLICT.
ACCORDINGLY WHEN CAPACITY OFFERED UNDER AN ASA IS CONSIDERED
TO BE EXCESSIVE WE HAVE ADVOCATED FREEZING THIS AT EXISTING LEVELS
RATHER THAN CUTTING BACK, WITH THE ONE EXCEPTION OF AIR SIAM WHERE UNIQUE CIRCUMSTANCES EXISTED. WE HAVE NEVER ADVOCATED CUTTING BACK SIA'S REGIONAL SERVICES TO IMPROVE THE CPA/SIA BALANCE,
RATHER THAT SIA'S COMPETING SERVICES BE FROZEN UNTIL CPA CAN CATCH
UP CR THAT WHEN ADDITIONAL TRUNK ROUTE RIGHTS ARE REQUIRED FROM
US BY SIA THAT THE VALUE OF THESE SHOULD BE COMPENSATED BY
REDUCTIONS IN THE REGION. IN REACHING THIS POSITION WE TOOK INTO
ACCOUNT THE FACT THAT BECAUSE THERE IS A MULTIPLICITY OF COMPETING
DAILY SERVICES ON THE REGIONAL ROUTES FLOWN BY SIA, THE LATTER'S
WITHDRAWAL WOULD NOT HARM THE PUBLIC REQUIREMENT FOR READY
AVAILABILITY OF AIR-SERVICES TO SERVE OUR TRADING AND TOURIST
INTERESTS. THIS SITUATION DOES NOT APPLY TO THE CASE OF SERVICES
TO SWITZERLAND WHERE WE DO NOT HAVE DAILY SERVICES AND WHERE BA IS
NOT EVEN ON THE ROUTE.
2. IT IS OUR VIEW THAT BA DO VERY WELL OUT OF HONG KONG WITH THEIR
MONOPOLY ON THE UK/HK ROUTE, WHICH IN ITSELF GIVES RISE TO CRITICISM FROM TIME TO TIME. WE CONSIDER THAT THE PUBLIC INTEREST OF HONG
KONG SHOULD NOT BE RELEGATED STILL FURTHER IN THE INTERESTS OF BA'S PROFITABILITY, AND THAT TO DO SO IS TO INVITE AN ESCALATION
OF THE PUBLIC.DISCONTENT AND CRITICISM WHICH IS ALREADY FELT HERE
OVER HMG'S HANDLING OF AIR-SERVICES MATTER AFFECTING HONG KONG.
CONFIDENTIAL
13. YOUR
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