TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 60

GRS625

RIORITY

CONFIDENTIAL

HRK 1841

RECEIVED IN RAGINTZA AJ. 31 1,1 AUG 1978

DESK OFFICER

INDEX

PA

CYPHER CAT A

FROM F C O 101804Z

CONFIDENTIAL

No

a

CLE

473

PA

TO PRIORITY COPENHAGEN TELEGRAM NO 197 OF 10 AUGUST, 1978,

AND TO OSLO AND STOCKHOLM,

INFO HONG KONG (GOVERNOR AND BCARFE).

U K/SCANDINAVIA AIR SERVICES.

1.. THE SECOND ROUND OF NEGOTIATIONS FOR NEW AIR SERVICES

AGREEMENTS TOOK PLACE IN LONDON FROM 7 TO 9 AUGUST. ROGERS (DOT) LED FOR THE UK AND BOGH (MFA, NORWAY) FOR THE SCANDINAVIANS.

2. IT WAS EVIDENT FROM THE BEGINNING THAT THE SCANDINAVIAN DELEGATION

HAD NOT GIVEN ANY REAL THOUGHT TO THEIR POSITION SINCE THE FIRST

ROUND AND HAD NOT PROPERLY STUDIED THE DRAFT ARTICLES, ROUTE SCHEDULES, AND MEMORANDUM OF UNDERSTANDING WHICH WE HAD, AT THEIR SPECIFIC REQUEST, PREPARED AND SENT TO THEM LAST MONTH. THIS LACK OF PREPARATION MEANT THAT WE WERE UNABLE TO MAKE ANY PROGRESS. ALTHOUGH WE HAD SET ASIDE 1-1/2 WEEKS FOR THESE NEGOTIATIONS, THE

TALKS PETERED OUT AFTER ONLY THREE DAYS WHEN THE SCANDINAVIANS DECIDED TO RETURN TO THEIR CAPITALS TO GIVE FURTHER CONSIDERATION TO THE VARIOUS ISSUES. HOWEVER, THE TIME WAS NOT ENTIRELY WASTED SINCE IT APPEARED THAT OUR CAREFULLY EXPLAINED PROPOSALS FOR RESOLVING THE DEADLOCK WERE GIVING THEM FOOD FOR THOUGHT.

3. BOTH DURING THE PLENARY SESSIONS AND IN A TETE A TETE WITH

EOGH ON 10 AUGUST, ROGERS MADE IT PLAIN THAT WE WERE FLEXIBLE ON MOST ISSUES BUT THAT WE WERE NOT PREPARED TO SEE OUR INDEPENDENT CARRIERS SUPPRESSED. NOR WERE WE PREPARED TO ACCEPT THE REGULATION OF CAPACITY ON A 50/50 BASIS, SINCE THIS WOULD BE MUCH TOO RIGID AND, IF IT APPLIED TO SCHEDULED SERVICES ONLY,

WOULD WORK TO THE SCANDINAVIANS' ADVANTAGE. BUT WE HAD NO INTENTION

OF ADOPTING LAISSEZ-FAIRE POLICIES AND SWAMPING SAS EVEN IF OUR INDEPENDENTS HAD EITHER THE WISH OR THE RESOURCES TO DO SO (LOTH OF WHICH SEEMED UNLIKELY).

CONFIDENTIAL

14.

4. AS

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