GR 275
PRIORITY
CYRER CAT Á
FONG KONG 2402092
RESTRICTED
603
RES.TRICTE D
TO PRIORITY F.C.0 TEL NO.1221 OF 24 OCTOBER 78,
INFO PRIORITY KUALA LUMPUR,
RECENDO
ROUTINE HONG KONG GOVERNMENT OFFICE LONDOM
BUDGET FARES
MALAYSIA/USA.
TRY NO. 51
24 OCT 10078
OFFICER
INDEX
PA
REC
Action Tex
25
1. GOVERNMENT APPROVED BUDGET FARE HAS RECENTLY BEEN INTRODUCED BETWEEN MALAYSIA AND THE UNITED STATES. MAS AND PAN AMERICAN HAVE COME TO AN ARRANGEMENT WHEREBY MAS CARRY THE BUDGET FARE TRAFFIC KUL/HKG AND PAA CARRY IT TRANS -PACIFIC.
2. CPA HAS HAD SEVERAL DISCUSSIONS WITH NORTHWEST ORIENT WITH A VIEW TO COMING TO A SIMILAR ARRANGEMENT, WITH CPA CARRYING THE TRAFFIC ON THE KUL/HKG SECTOR.
3. CPA HAVE RECENTLY LEARNT THAT THE MALAYSIAN DCA HAS ISSUED AN
OFFICIAL DIRECTIVE TO NORTHWEST ORIENT'S REPRESENTATIVE IN KUALA LUMPUR INSTRUCTING THEM NOT TO INCLUDE ANY CPA PARTICIPATION IN THE BUDGET FARE TRAFFIC BETWEEN MALAYSIA AND THE U.S. WOULD BE ALLOWED TO PARTICIPATE.
ONLY MAS
THE EXPLANATION GIVEN BY MAS
WAS THAT SINCE THEY ENJOYED LATENT RIGHTS TO THE U.S THEY CONSIDERED
THIS TRAFFIC TO BE 3RD/4TH FREEDOM EVEN THOUGH THERE IS A BREAK OF JOURNEY, A CHANGE IN CARRIER AND A NIGHT-STOP IN HONG KONG, WHICH IN OUR VIEW TOTALLY DESTROYS THEIR ARGUMENT.
4. LAST YEAR THE MALAYSIANS ATTEMPTED TO FORCE A SIMILARLY RESTRICTIVE POLICY WITH REGARD TO THE ICEM FARES (APPLICABLE TO VIETNAMESE REFUGEES) AND THIS SITUATION WAS ONLY RESOLVED AFTER DISCUSSIONS BETWEEN ROGERS AND THE MALAYSIAN MINISTER OF
MACK 184/31977 COMMUNICATIONS (KUALA LUMPUR TELNO.324, PARA.4 OF 25 NOV 77
WE ARE OF THE
5. CPA HAVE ASKED FOR OUR SUPPORT ON THIS MATTER.
VIEW THAT THEIR GRIEVANCE IS JUSTIFIED AND WOULD BE GRATEFUL IF KUALA LUMPUR COULD BE ASKED TO TAKE THE MATTER FURTHER WITH THE MALAYSIAN AUTHORITIES.
MACLEHOSE
FILES MAED
HK & GD SEAD NAD
MISS BROWN
COPIES TO: HONG KONG GOVT OFFICE
LONDON
[COPIES SENT TO CAD/DOT]
COPI
RESTRICTED
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