CONFIDENTIAL
GPS.480 IMMEDIATE
CYPHERCAT A
FM OSLO 30/1313Z
HKK 184/1
-JUN 1978
CONFIDENTIAL
TO IMMEDIATE DEPT DEINDRADE TELNO ALLOT
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Discussed with
FOLLOWING FOR STANDEN (CAIR 2) FROM ROGERS IN Richover. PA
UK/SWITZERLAND AIR SERVICES TALKS.
8776.
1. I HAVE READ WITH INTEREST HONG KONG TELNO 653 OF 26 MAY WHICH WAS COPIED TO ME HERE. SINCE I SHALL NOT SEE YOU BEFORE YOU LEAVE FOR THE TALKS IN BERNE, THE FOLLOWING COMMENTS (WHICH MAY NOT ALL HAVE OCCURRED TO YOU) MAY BE USEFUL BOTH IN BRIEFING YOURSELF FOR THE TALKS AND IN DRAFTING ANY REPLY WHICH YOU MAY CONSIDER IT APPROPRIATE TO SEND TO HONG KONG IN ADVANCE.
2. THERE IS A STRIKING DIFFERENCE BETWEEN THE ATTITUDE DEMONSTRATED BY TUR AND THE ATTITUDE ADOPTED IN HONG KONG TELNO 661 OF THE SELF- SAME DAY. THIS REFLECTS WIDE DIFFERENCES IN HONG KONG'S CONCERN FOR BA AND CPA. BUT WE CANNOT DISCRIMINATE IN THIS FASHION. WE NEED TO ADOPT AN EVEN-HANDED ATTITUDE TOWARDS THESE TWO BRITISH AIRLINES. 3. AS REGARDS THE POINT IN PARA 1 OF TUR, MY UNDERSTANDING IS THAT Y ALL YOU ARE SEEKING TO DO IS TO OBLIGE THE SWISS TO COMPLY WITH THE OBLIGATIONS IN THE AIR SERVICES AGREEMENT, NOTABLY:
$ (A) THE REQUIREMENT THAT CAPACITY SHOULD BEAR A CLOSE RELATIO~
NSHIP TO THE DEMAND AND
(B) THE STATEMENT THAT THE PRIMARY PURPOSE OF THE CAPACITY IS
TO MEET THE DEMAND FOR 3/4 FREEDOM TRAFFIC,
(I DO NOT HAVE THE PRECISE TEXT OF THE ASA WITH ME HERE: BUT THIS IS THE GIST OF THE RELEVANT REQUIREMENTS.) THIS DOES NOT REQUIRE YOU TO DEMONSTRATE DAMAGE TO BA. IF, AS I UNDERSTAND, THE PRESENT CAPACITY FAILS TO COMPLY WITH THESE TWO OBLIGATIONS IT WOULD OF COURSE BE OPEN TO SWISSAIR TO REDUCE THEIR CAPACITY IN ORDER TO MEET POINT(A) ABOVE BY PUTTING ON SMALLER AIRCRAFT INSTEAD OF BY REDUCING THE NUMBER OF SERVICES PER WEEK. AS REGARDS THE SECOND POINT, EXCESS RELIANCE UPON FIFTH FREEDON TRAFFIC COULD BE CORRECTED BY A VARIETY OF MEANS, INCLUDING QUOTAS OR THE BLINDING OF SOME FIFTH FREEDOM SECTORS. 4. AS REGARDS PARA 2 OF TUR, POSSIBLY ONE SOLUTION WOULD BE A JOINT OPERATION BY BA AND SWISSAIR BETWEEN HONG KONG AND SWITZERLAND, FAIL- ING THIS, OR SOME OTHER SOLUTION WHICH JUSTIFIES THE MAINTENANCE OF THE PRESENT FREQUENCY, IT IS CLEAR FROM THE FIGURES THAT THE NUMBER OF PEOPLE WISHING TO TRAVEL BETWEEN HONG KONG AND SWITZERLAND NOWHERE NEAR JUSTIFIES THE PRESENT CAPACITY,
CONFIDENTIAL
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