TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 140

INTRODUCE SERVICES BETWEEN LONDON AND MANILA. THE REVISED

ROUTE PROPOSALS SUBMITTED BY EACH DELEGATION ARE ATTACHED

MERETO AS ANNEX A. THE DETAILS OF THE SECTOR TRAFFIC

RIGHTS WITHIN THE ROUTE STRUCTURE REQUIRED FURTHER

DISCUSSION. HOWEVER, AN EXCHANGE OF FIFTH FREEDOM

TRAFFIC RIGHTS BETWEEN A POINT IN THE GULF STATES AND

MANILA FOR BRITISH AIRWAYS AND BETWEEN KARACHI AND

LONDON AND BETWEEN ROME AND LONDON, FOR PHILIPPINE

AIRLINES WAS FOUND ACCEPTABLE BY BOTH DELEGATIONS,

4. CONSIDERABLE DISCUSSION ON THE PRESENT STRUCTURE

OF THE REGIONAL ROUTES TOOK PLACE IN WHICH THE

DESIGNATED AIRLINES OF BOTH CONTRACTING PARTIES INDICATED

REDUCED REQUIREMENTS IN VARYING DEGREES. THE DELEGATIONS

AGREED TO PURSUE THESE MATTERS, INCLUDING A PROPOSAL BY

THE UNITED KINGDOM DELEGATION FOR A RECIPROCAL EXCHANGE OF A NEW ROUTE BETWEEN HONG KONG AND CEBU, IN THE NEXT

ROUND OF CONSULTATIONS.

BOTH DELEGATIONS CHARGED PHILIPPINE AIRLINES AND

CATHAY PACIFIC AIRWAYS WITH THE TASK OF REVIEWING

PROCEDURES WITHIN THEIR POOL AGREEMENT FOR RECIPROCALLY

INCREASING THEIR CAPACITIES ON THE MANILA-HONG KONG

ROUTE IN LINE WITH EXISTING AND PROJECTED TRAFFIC DEMAND

ON THE ROUTE AND OF WORKING OUT A NEW BASIC CAPACITY PROVISION AS A FALL-BACK. THEY WERE ASKED TO SUBMIT AGREED PROPOSALS TO THEIR RESPECTIVE AERONAUTICAL AUTHORITIES WITHIN THREE (3) MONTHS.

5. THE DELEGATIONS CONSIDERED THE THREE (3) NEW ARTICLES

PROPOSED BY THE UNITED KINGDOM DELEGATION FOR INCLUSION IN THE AIR SERVICES AGREEMENT, THESE AND ALTERNATIVE

DRAFTS OF TWO OF THE ARTICLES PROVIDED BY THE PHILIP.

PINE DELEGATION WOULD BE CONSIDERED FURTHER BY THE

AERONAUTICAL AUTHORITIES AND DISCUSSED AT THE

NEXT ROUND OF CONSULTATIONS.

6. THE DELEGATIONS DISCUSSED THE POSSIBILITY OF

PROVIDING ON A RECIPROCAL BASIS FOR THE EXEMPTION OF THEIR BZSIGNATED AIRLINES FROM TAXATION BY THE

OTHER CONTRACTING PARTY. THE UNITED KINGDOM DELEGATION

INDICATED THE WILLINGNESS OF THE UNITED KINGDOM

METROPOLITAN TAX AUTHORITIES TO OPEN DISCUSSIONS ON

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