TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 19

GR 165

HKK 184/1

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8 DEC1978

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FM HONG KONG 060853Z DEC 78

3.

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TO ROUTINE FOREIGN AND COMMONWEALTH OFFICE

TELNO.1399 OF 6 DECEMBER.

for refs

1. WE HAVE DISCUSSED WITH CPA THE D.O.T RESPONSE TO SIA'S PROPOSALS AS NOTIFIED IN D.T.1 TELNC. ALLOT 164 AND EXCHANGE OF LETTERS, AND WE ARE NOT VERY HAPPY ABOUT IT.

Thave asked nerfed

Noted

CLE

Б

18/12

Miss Ch

2. WHILST WE REGARD THE AMENDMENTS TO THE DATES OF WITHDRAWAL

OF HKG/OSA SERVICES AS ACCEPTABLE (PARA.2 OF D.0.T LETTER OF 20 NOVEMBER TO SIA) WE ARE DISAPPOINTED THAT THE PROPOSED ACCOMMODATION OF SIA'S PROCUREMENT PLANS SEEMS LIKELY TO AFFORD

SIA AN OPPORTUNITY TO EARN MUCH EXTRA REVENUE ON THE TRANS-PACIFIC ROUTE. CPA ESTIMATE THE ADDITIONAL REVENUE THAT COULD BE SO EARNED BY 2 X 747'S DURING THE PERIOD IN QUESTICM (1 JULY TO 31 AUGUST 79) AT US DOLLARS 5.76 MILLION OVER AND ABOVE THAT WHICH COULD BE EARNED BY 2 X LC-10'S. SUBSTITUTION WOULD BE MORE ACCEPTABLE IF SIA INTRODUCED ONLY ONE B-747 ON THE TRANS-PACIFIC ROUTE ON 1 JULY. LETTER TO D.0.T FOLLOWS BY

AIRMAIL.

MACLEHOSE

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