GR 420
PRIORITY
CYPHER CAT A
FM FCO 071624Z
CONFIDENTIAL
CONFIDENTIAL
TO PRIORITY SINGAPORE TELNO 173 OF 7 JULY
INFO HONG KONG (GOVERNOR AND BCARFE)
IND
1394
#KK 184/1 AJUL 1978
No
OUR TELNO 449 TO HONG KONG: UK/SINGAPORE AIR SERVICES.
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SOR (395
1. AS FAR AS WE ARE AWARE, THERE HAS BEEN NO ADVERSE REACTION FROM THE SINGAPORE GOVERNMENT TO THE DEAL WITH SIA REPORTED IN TELEGRAM
UNDER REFERENCE.
2. HOWEVER, BEFORE WE INITIATE AN EXCHANGE OF DIPLOMATIC NOTES TO CONFIRM THE ADDITIONAL RIGHTS FOR CPA ON UK ROUTE 2, WE CONSIDER IT WOULD BE DESIRABLE TO MAKE AN APPROACH THROUGH THE MFA TO ASCERTAIN THAT THE SINGAPORE GOVERNMENT IS AGREEABLE TO THE GRANTING OF THE RIGHTS AND THAT AN EXCHANGE OF DIPLOMATIC NOTES
ALONG THE LINES OF THAT CONTAINED IN MIFT WOULD BE ACCEPTABLE
TO THEM.
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3. IN YOUR APPROACH TO THE MFA, YOU SHOULD CONFINE YOURSELF TO SAYING THAT YOU UNDERSTAND THAT IN RECENT DISCUSSIONS HELD IN LONDON AT THE REQUEST OF SINGAPORE AIRLINES BETWEEN THE SENIOR MANAGEMENT OF SINGAPORE AIRLINES AND REPRESENTATIVES OF THE UK DEPT OF TRADE, CONCERNING CHANGED REQUIREMENTS FOR OPERATION BY SINGAPORE AIRLINES ON SINGAPORE ROUTE 11 UNDER THE ASA BETWEEN UK AND SINGAPORE, ATTENTION WAS FOCUSSED ON THE GREAT DISPARITY IN EARNINGS BETWEEN SINGAPORE AIRLINES AND CATHAY PACIFIC AIRWAYS RESPECTIVELY ON SINGAPORE ROUTE 11 AND THE UK ROUTE 11 IN THE SCHEDULE TO THE ASA. BOTH SIDES AGREED THAT IN THE INTERESTS OF MOVING TOWARDS A HEALTHY BALANCE, IT WOULD
BE DESIRABLE FOR CPA TO BE ACCORDED EXTRA RIGHTS AND THE CHAIRMAN OF SIA AGREED TO RECOMMEND TO HIS GOVERNMENT THAT IT SHOULD GRANT THOSE EXTRA RIGHTS TO CPA SET OUT IN MIFT.
4. WE WOULD LIKE TO SEE THIS DEAL WITH SINGAPORE SEWN UP BEFORE WE OR THE AUSTRALIANS BECOME INVOLVED WITH SINGAPORE OVER THE NEW AUSTRALIAN PROPOSALS FOR THE TRUNK ROUTE AND WOULD BE GLAD THEREFORE IF YOU WOULD MAKE AN EARLY APPROACH TO THE MFA.
CONFIDENTIAL
15. IF THE
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