TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 27

X

publicly expressed disquiet at the scheme, describing

it as protectionist, and contrasting Australia's

position with its opposition to alleged Community

protectionism.

Hong Kong

8 The Australians wish to introduce the same scheme on the

route between Australia and Hong Kong. This would have.

implications for CPA's services between Hong Kong on the one

hand and East and West Australia on the other. The Hong

Kong Government and CPA need time to examine the implications

in greater depth. Their initial reaction

Las (as into the discussions with the Australians/

aim of achieving cheaper fares, which would

when brought llows: They)

X of increasing tourist revenue in Hong Kong.

(a third of CPA's

Ed

to support the

have the effect They thought

The service

to East Australia would probably not be much affected but the

West Australia service would become unviable, unless, the

Australians agreed to intermediate traffic stops (with or

without fifth freedom rights). This seemed unlikely.

Hong Kong were especially concerned at the possibility of intermediate traffic other countries, especially Japan, following the Australians

total earnings

Comes

Yeon

Such as this)

Figures?

precedent, thus jeopardising the carriage of the considerable intermediate trafficy which is in Hong Kong hands between

Taiwan and Japan. The UK has appreciable leverage

with Japan, however, on the UK-Japan trunk routesand

we could probably protect Hong Kong's position, as we have

done for the last few years.

Nevertheless, until the

Hong Kong Government and CA have completed their

examination, it is not possible to give the Australians

a lefinitive answer in parea of the Australian/ routes.