TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 85

CONFIDENTIAL

4. AS TO THE REMINDER BY ROGER TO SWIRE/CPA OFFICIALS OF YOUR

DISAPPOINTMENT THAT THEY HAD NOT TAKEN ADVANTAGE OF THIS QUOTE OPPORTUNITY UNQUOTE, IT IS WORTH POINTING OUT THAT IN THE NEGOTIATIONS, THE HONG KONG REPRESENTATIVES, ON THE ADVICE OF

CPA, MADE IT KNOWN TO THE U.S SIDE THAT CPA HAD NO INTENTION OF SEEKING TRANS-PACIFIC RIGHTS FOR AT LEAST FIVE YEARS. THIS INFORMATION WAS GIVEN IN GOOD FAITH AND WAS EQUALLY WELL KNOWN TO THE U.K SIDE. IT IS ALSO POSSIBLE THAT THIS WAS ONE OF THE CONSIDERATIONS THAT LED TO THE AMERICANS BEING PREPARED AT THE ELEVENTH HOUR TO AGREE TO ADDITIONAL CONCESSIONS ON THE BRITISH ROUTES. AGAINST THIS BACKGROUND, WE ARE CONCERNED THAT ROGERS SHOULD BE MAKING STATEMENTS OF THIS SORT TO CPA.

5. TURNING TO THE DIFFERENT ATTITUDES OF CPA AND SIA, WE HAVE

SAID MANY TIMES THAT CPA ARE A COMMERCIALLY MOTIVATED AIRLINE AND WE WOULD NOT WISH TO SEE THEM OPERATING IN ANY OTHER WAY. WE ARE NOT INTERESTED IN CPA 'FLYING THE FLAG" AND WE THINK IT QUITE WRONG THAT PRESSURE SHOULD BE BROUGHT TO BEAR ON CPA TO FLY ON ROUTES WHICH THEY, IN THEIR COMMERCIAL JUDGEMENT, CONSIDER TO BE LESS REWARDING THAN OTHERS WHICH THEY COULD MOUNT.

6. WITH REGARD TO THE HONG KONG-EAST AUSTRALIA ROUTE, THIS HAS BEEN THE SUBJECT OF PROTRACTED DISCUSSION AND WE DO NOT ACCEPT THAT YOUR ARGUMENT IS VALID.

MACLEHOSE

FILES

MAED

HKGD SEAD

MISS BROWN MR MURRAY MR.BUTLER

CONFIDENT IAL

COPIES TO:

CAD/DOT. HKGO.,LONDON.