TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 102

45

16

GR 1770

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 171724Z JAN 79

TO PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TELNO.119 OF 17 JANUARY,

INFO PRIORITY SINGAPORE (FOR ROGERS).

I

YOUR TELNO.15 : U.K/SINGAPORE AIR SERVICES,

HKK18450. ST

R2.2.

FA

мо No How

NO. 31

1. CPA WERE ASKED TO RECONSIDER THEIR ATTITUDE, HAVING REGARD TO

LOSS OF GOODWILL INHERENT IN TAKING A HARD-LINE OVER THESE ISSUES, AS COMPARED WITH ANY LOSSES CPA MIGHT SUFFER. THEY HAVE NOW QUANTIFIED POSSIBLE EFFECTS AND CONCLUDED:

(A) AS REGARDS GUM-HKG THEY AGREE TO SIA HAVING TEMPORARY

RIGHTS PROVIDED THAT THEY ARE AVAILABLE ONLY WHILE SIA USE DC-10S ON THEIR TRANS-PACIFIC ROUTE, AND WITH THE FURTHER PROVISO THAT THEY WOULD LOSE THEM IF A BRITISH OPERATOR CAME

ON TO THE ROUTE.

(B) AS TO THE THIRD FREIGHTER CPA DO NOT OBJECT TO THIS

OPERATION EAST-BOUND ONLY WITH SIN-HKG BLINDED PROVIDED IT IS PERMITTED ONLY UNTIL A BRITISH OPERATOR BEGINS A SERVICE ON

THE ROUTE.

2. CPA ARE UNABLE TO IDENTIFY AN APPROPRIATE REQUIREMENT IN RETURN

FOR THESE CONCESSIONS AS THERE IS NOTHING THEY PRESENTLY REQUIRE. THEY ARE CONTENT THEREFORE. TO LEAVE THE RECIPROCAL CONCESSION ON DEPOSIT FOR FUTURE ENCASHMENT, A VIEW WITH WHICH WE CONCUR.

MACLEHOSE

FILES

MAED

HKOG D

SEAD

MISS BROWN

[COPIES SENT

SENT TO CADI DOT]

CONFIDENTIAL