TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 113

BY BAG

FM. FOO SAVING TELEGRAM

RESTRICTED

SHUING

TO: KUALA LUMPUR TEMNO 2/8 MARCH

Copies to:

Hong Kong

156

MIPT.

Quote:

(Governor & BEARFE), Washington

Following is text of Note to MFA:

[Usual opening]

157

RECEIVED T

#KK 184/1 PAY

9 MAR 1979

INDEX

J2.3

and have the hoort draw the

Ministry's attention to the following.

No

In a Tariff Notice dated 23 September 1978, issued by Malaysian Airline System (MAS) to advertise new budget fares between Kuala Lumpur and Honolulu, the West Coast of the United States of America and New York respectively, it was stated that those fares would be applicable only on the services of MAS and Pan American World Airways. Her Majesty's Government

submit that the British carrier, Cathay

Pacific Airways (CPA), be entitled to apply the new budget fares on the sector between Kuala Lumpur and

Hong Kong for the following reasons.

Under the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Malaysia for Air Services between and beyond their Respective Territories, signed at London on 24 May 1973 and as subsequently amended, Malaysia does not enjoy the right to a route to the United States of America with Hong Kong as an intermediate point. Traffic carried on the sector between Kuala

Lumpur and Hong Kong or vice versa is therefore third/

fourth freedom traffic, regardless of its final

destination. The route Kuala Lumpur-Hong Kong is a specified route in the aforementioned Agreement and any tariff

/in