TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 111

布政司署

香港下亞畢道

本署檔號 OUR REF.;

(142) in CR 15/936/48

* YOur Ref.:

CONFIDENTIAL

159

GOVERNMENT SECRETARIAT

HKK_184/1

LOWER ALBERT ROAD

HONG KON

21

Hong Kong & General Department, Foreign and Commonwealth office,

London S.W.1, England

IND

19:31979 A

Mo7th March 1979

See 1.164)

Dear Department,

FCO, Telno 134 of 8 February to us : UK/Canada Air Services discussions

CPA have now done an in-depth market study on the Hong Kong/Honolulu/Vancouver route and have concluded that this route is not viable. Indeed, it would involve very substantial losses over the first two or three years. Their present position is that a route to Vancouver must include Tokyo as an intermediate point. We must, therefore, revert to making every effort to obtain this route from the Canadians and then seek to obtain the option to serve either Honolulu or Seoul. The Hong Kong/Tokyo/Vancouver route would take care of the future for many years ahead, and the Honolulu and Soeul options are very much secondary objectives.

2.

In these circumstances, there is now no point in seeking to negotiate the early removal of the present restriction on serving Honolulu/Vancouver non-stop. We regret any inconvenience caused.

Yours ever,

Afung

(Alan Fung)

for Secretary for Economic Services

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