TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 143

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THE ROUTE. THE ROUTE WHICH THEY PROPOSED WAS DIFFERENT FROM THAT WHICH THEIR AIRLINE HAD TOLD US IN ADVANCE THEY WERE INTERESTED IN. NOTWITHSTANDING, WE SAID THAT THE FIFTH FREEDOM RIGHTS REQUESTED CAUSED US GREAT DIFFICULTY. EVENTUALLY THE DELEGATIONS CONFINED THEMSELVES TO REVISING THE STRUCTURE OF THE ROUTE WHICH DATES FROM 1955, WITHOUT REFERENCE TO TRAFFIC RIGHTS. WE DID HOWEVER, AGREE A LIMITED EXCHANGE OF FIFTH FREEDOM RIGHTS.

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4. BOTH DELEGATIONS PROPOSED REVISIONS TO THE STRUCTURE OF REGIONAL ROUTES, WHICH ALSO DATE FROM 1955. WE SAID THAT WE WANTED ONLY A THIRD/FOURTH FREEDOM EXCHANGE. WE DECLINED TO AGREE THE BEYOND POINTS WHICH THE PHILIPPINES REQUESTED CHINA, JAPAN AND SEOUL) BECAUSE OF POLITICAL AND/OR COMMERCIAL DIFFICULTIES. WE TABLED A PROPOSAL FOR A RECIPROCAL EXCHANGE OF A NEW ROUTE BETWEEN HONG KONG AND CEBU. THE PHILIPPINES SOUGHT SOME PAYMENT FOR THIS ON THE GROUND THAT PAL WOULD LOSE SOME DOMESTIC TRAFFIC. WE ARGUED AGAINST THIS AND LEFT THE PROPOSAL ON THE TABLE FOR DISCUSSION AT THE NEXT TALKS.

5. THE ATMOSPHERE IN THE TALKS WAS FRIENDLY THROUGHOUT.

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MR.BUTLER MISS BROWN MR.MURRAY

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