TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 187

SPS 740

CONFIDENTIAL

CONFIDENTIAL

THEI 184/1

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No

अमर

FM KUALA LUMPUR 080445Z FEB

TO IMMEDIATE FCO

TEND 88 OF 8 FEB

119

INFO SINGAPORE BANGKOK JAKARTA, MANILA, CANBERRA, WELLINGTON, HONG KONG (GOVERNOR AND BCARFE)

WY TEL NO 87: UK/MALAYSIA AIR SERVICES TALKS

1. BOTH BEFORE AND AFTER THE AFTERNOON SESSION ON 7 FEBRUARY

ROGERS HAD A LENGTHY TETE-A-TETE WITH HAMZAH.

2. AS REGARDS THE HONG KONG ROUTES HAMZAH SAID THAT ALTHOUGH HE WAS UNABLE TO ACCEPT OUR ASSUMPTION THAT MAS'S TRAFFIC BETWEEN KUALA LUMPUR AND TOKYO WOULD DECLINE WHEN JAL OFFERED NON-STOP SERVICES IN COMPETITION WITH THEIR STOPPING SERVICES VIA HONG KONG AND TAIPEH, HE WAS PREPARED TO AGREE TO SOME QUOTE ADMINISTRATIVE ARRANGEMENT UNQUOTE UNDER WHICH ALTHOUGH MAS WOULD BE THEORETICALLY ENTITLED TO MOUNT A DAILY AIRBUS SERVICE FROM 1 NOVEMBER 1979 THEY WOULD IN PRACTICE WORK UP TO THAT LEVEL OVER AN AGREED PERIOD. POGERS SAID THAT HE HIMSELF HAD BEEN THINKING OF SOME SOLUTION ON THESE LINES AND UNDERTOOK TO CONSIDER WHAT THE FORMULA

#IGHT BE,

3. HAMZAH SAID THAT U AGREED WITH THE VIEW ROGERS HAD EXPRESSED

IN PLENARY SESSION THAT THE QUESTION OF FIFTH FREEDOM OPERATIONS BY

AS BEYOND HONG KONG TO TAIPEH AND TOKYO WAS PROBABLY THE MOST DIFFICULT ISSUE THAT THE TWO SIDES FACED. HE COULD NOT CONTEMPLATE A REDUCTION BELOW THE PRESENT LEVEL AND SEEMED SURPRISED WHEN ROGERS SAID THAT WE WERE REALLY AIMING TO GET FIFTH FREEDOM EARN- INGS OF THE TWO SIDES MORE CLOSELY INTO BALANCE. HE SAID THAT THE FURTHEST HE THOUGHT THE MALAYSIANS WOULD BE ABLE TO GO

OULD BE TO HOLD. THEIR FIFTH FREEDOM EARNINGS AT THE PRESENT LEVEL. CONFIDENTIAL

14, AS REGARDS