TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 97

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3. NO MENTION IS MADE OF THE LACK OF RIGHTS FOR AMERICAN AIRLINES TO OPERATE ON FROM HONGKONG TO PEKING UNDER BERMUDA 2, BUT THE GRANT OF SUCH RIGHTS, ON SUITABLE TERMS, WOULD APPEAR DIFFICULT TO DENY ONCE AGREEMENT IS REACHED FOR BRITISH AIRWAYS TO SERVE PEKING VIA HONG KONG. THERE MAY HOWEVER BE PRESSURE IN DUE COURSE TO GO FURTHER SINCE PAN AM IS ALSO APPARENTLY FILING FOR AUTHORITY

TO SERVE SHANGHAI, CANTON AND SIAN FROM ANYONE OF A NUMBER OF U.S. POINTS INCLUDING NEW YORK, UNITED, TWA AND TRANS INTERNATIONAL

ARE ALSO SAID TO BE INTERESTED.

4. PAN AM ALREADY HAD THE EQUIPMENT B747 SPS TO OPERATE NON STOP. YESTERDAY'S WASHINGTON POST CARRIES A REPORT THAT CHINA HAS SIGNED A CONTRACT FOR THREE OF THESE AIRCRAFT AT A COST OF 55 MILLION DOLLARS, AND HAS TAKEN OUT AN OPTION FOR TWO MORE.

JAY

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