TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 124

CONFIDENTIAL

2284

i

KONG/LONDON THEY WOULD WANT TO OPERATE TO POINTS EN ROUTE, PRESUMABLY IN PARTICULAR THE GULF. (WHETHER THIS WOULD BE

TECHNICALLY FIFTH FREEDOM IS A NICE POINT). THIS WOULD HAVE

ADVANTAGES IN PROVIDING A MIDDLE EAST LINK TO GATWICK AND THUS FOR

B.C.A.L.'S TEXAN SERVICES BUT WOULD DISADVANTAGE B.A. HENCE THE

REFERENCE IN MY PREVIOUS TELEGRAM FOR THE NEED FOR C.P.A. TO COMPEN-

SATE P.A. ELSEWHERE ALONG THE POUTE. BUT I WOULD NOT REGARD THIS

ASPECT AS NECESSARILY DECISIVE.

4. THERE IS NO DANGER THAT THE C.A.A. WILL BE COMING TO ANY HASTY

DECISIONS ABOUT THE SUBSTITUTION OF A.B.C.'S FOR AFFINITY CHARTERS

ON THE HONG KONG ROUTE. IF THEY DO DECIDE TO GO THIS WAY, AND THEY

ARE STILL SOME WAY FROM PEACHING A DECISION, A.B.C.'S WILL BE

AVAILABLE AS PART CHARTERS ON SCHEDULED SERVICES AS WELL AS ON WHOLE

PLANE CHARTERS (IF ANYONE IS INTERESTED) IN JUST THE SAME WAY AS THE

PRESENT AFFINITY CHARTERS ARE. THERE HAVE ALSO, AS YOU KNOW, BEEN

WHOLE PLANE CHARTERS UNDER THE AFFINITY CHARTERS REGIME.

5.

CATHAY PACIFIC HAS NOW WRITTEN TO THE C.A.A. EXPRESSING A

DEFINITE INTEREST IN A.B.C.'S AND HAVE CLEARLY INDICATED THAT THEY

WILL WISH TO PUT IN A FORMAL APPLICATION ONCE THE RULES HAVE BEEN

ESTABLISHED. C.A.A. WILL BE SENDING A HOLDING REPLY. BRYANT

ESTABLISHED IN HONG KONG, HOWEVER, THAT IT WAS THE D.C.A. AND NOT

C.P.A. WHO PUT A POSSIBLE C.P.A. SERVICE TO LONDON ON THE AGENDA FOR

YOUR TALKS.

6. SO BY ALL MEANS HAVE QUITE DISCUSSIONS BUT IN THEM NEITHER

ENCOURAGE NOR DISCOURAGE: AND IN PARTICULAR MAKE CLEAR THE ROLE OF

THE C.A.A.

2

CONFIDENTIAL