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5. TO BALANCE THE ADDITIONAL EARNINGS POSSIBILITIES WHICH WOULD
ACCRUE TO GARUDA FROM TRANS-PACIFIC RIGHTS BEYOND HKG, WE AND CPA WOULD WISH AN ADDITION TO THE 1973 AGREEMENT TO PROVIDE FOR CPA'S PERMANENT ACCESS TO DPS. DPS SHOULD BE ADDED TO THE ROUTE SCHEDULE AS A POINT IN INDONESIA, WITH PROVISION FOR CPA TO OPERATE EITHER BEFORE OR AFTER JKT, OR AS A SEPARATE DESTINATION, IF REQUIRED. THIS PERMANENT ACCESS WOULD THEREFORE NULLIFY THE CONDITIONAL ACCESS TO DPS IN PARA 2(B) ABÚVE.
6. WE SHOULD ALSO LIKE A CLAUSE ADDED IN ANY AGREEMENT WHICH
REQUIRED A REVIEW OF GARUDA'S TRANS-PACIFIC SERVICE THROUGH HKG IN THE LIGHT OF THE PREVAILING BILATERAL EARNINGS AT THE TIME SHOULD CPA DECIDE TO COMMENCE THEIR TRANS-PACIFIC OPERATION. IF THE DOT SHOULD CONSIDER SUCH A REFERENCE UNDESIRABLE, WE WOULD BE CONTENT WITH GENERAL REFERENCE TO THE BASIC OBJECTIVE IN A NEW AGREEMENT, NAMELY THE ATTAINMENT OF AN EQUITABLE BALANCE OF EARNINGS BETWEEN THE TWO CARRIERS.
7. SUBJECT TO THE ABOVE VIEWS, WE ARE IN SUPPORT OF CPA'S ASPIR~. ATIONS AS CONTAINED IN THEIR LETTER OF 14 JULY AND WOULD HOPE
A SATISFACTORY DEAL FOR CPA COULD BE CONCLUDED IN THE FORTHCOMING
NEGOTIATIONS.
8. CANBERRA IS REQUESTED TO PASS COPY TO ROGERS AND LATHAM.
ROBERT'S
>
FILES.
MAED. Swpw.
W
HKFGD.
SEAD. MR BUTLER. MISS BROWN MIL STRATTON.
[COPIES SENT TO CAD/DOT]
COPIES TO HONGKONG GOUT OFFICE
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CONFIDENTIAL
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