TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 170

430

NIR

GR 285 PRIORITY

HER/CAT A

FM HONG KONG 211007Z

CONFIDENTIAL

CONFIDENTIAL

TO PRIORITY F.C.0 TELNO.910 OF 21 JULY 78,

NIRL

HKK184/1

INDEX

2

OFFICER

PA

1978

NO. ST

REGISTRE

No

INFO KUALA LUMPUR, HONG KONG GOVERNMENT OFFICE LONDON.

D.O.T TELNO. ALLOT 111: U.K/MALAYSIA AIR SERVICES.

Action Tere

1. YOU WILL KNOW FROM MY TELNO.901 THAT CPA HAVE ALREADY MET WITH MAS. IN MAKING THESE ARRANGEMENTS (AT SOME INCONVENIENCE TO.CPA), WE WERE CONSCIOUS OF OF STEELE'S SUMMING UP AT THE TALKS THAT WE WOULD CONSIDER WHAT OTHER TRIGGER MECHANISMS MIGHT BE INCORPORATED IN ANY NEW ARRANCEMENTS AND OF THE AGREEMENT THAT THE TWO SIDES WOULD BE IN TOUCH IN THE NEAR FUTURE ABOUT DATES FOR THE NEXT ROUND OF DISCUSSIONS (FCO TELNO.218

OF 25 MAY).

2. THE CONCERN NOW BEING EXPRESSED ABOUT LOOP-HOLES FOR INCREASING

CAPACITY AND AGREEING A WELL DEVISED FORMULA IS RATHER UNEXPECTED. CPA ARE WELL BRIEFED ON WHAT TO DISCUSS AND WELL EXPERIENCED IN THE FIELD OF COMMERCIAL AIRLINE ARRANGEMENTS: AND ANY AGREEMENT IS AD REFERENDUM TO GOVERNMENTS. IF YOU HAVE SUGGESTIONS TO MAKE, OVER AND ABOVE THOSE FEATURING IN STABLES' LETTER OF 8 JUNE 78, WE SHOULD BE GLAD TO HAVE THEM.

3. THE PRESENT CAPACITY SITUATION ON THE KONG KONG-W.MALAYSIA ROUTE

IS TIGHT AND, AS EXPLAINED BY LATHAM AT THE BRIEFING MEETING ON 22 MAY, THERE IS A REQUIREMENT FOR ADDITIONAL CAPACITY NOW IN THE PUBLIC INTEREST. OUR CONCERN HERE IS THAT SEAT FACTORS ARE AND MAY REMAIN SO HIGH THAT THE TIME SENSITIVE, FULL-FARE PAYING PASSENGER

CANNOT ALWAYS GET A SEAT AT SHORT NOTICE.

4. WE HOPE SOON TO REPORT ON MCARTHUR'S VISIT TO KUALA LUMPUR.

ROBERTS

FILES

MAED

HK & GD

SEAD

MISS BROWN

COPIES SENT TO CAD/DCT/

CONFIDENTIAL