GR 400
CONFIDENTIAL
DESK BY 020045Z
FM FCO 011941Z JUNE 79
TO IMMEDIATE KUALA LUMPUR
•
CONFIDENTIAL HKK 184/1
RECEIVED IN REDISTRY NO
B
5 JUMIOTO
(259)
TELNO 125 OF 1 JUN
No
INFO IMMEDIATE HONGKONG (GOVERNOR AND BCARFE).
PRIORITY BANGKOK, SINGAPORE, JAKARTA, MANILA, CANBERRA, WELLINGTON,
UK/MALAYSIA AIR SERVICES
1. PLEASE SHOW THIS TELEGRAM TO MR PARKINSON, WHO ALREADY HAS
A BRIEF, WRITTEN BEFORE THESE TALKS STARTED, GIVING THE BACKGROUND,
2. IN THE FIRST THREE DAYS VERY LITTLE PROGRESS WAS MADE,
WITH THE MALAYSIANS RELUCTANT TO MAKE ANY MOVE IN OUR
DIRECTION. TO BREAK THE DEADLOCK WE THEREFORE GAVE
THEM LAST NIGHT A DRAFT C M U: STEELE TOLD
NOOR PRIVATELY THAT THIS EMBODIED MOST IF NOT ALL
THE CONCESSIONS WE WERE PREPARED TO MAKE.
3. THE PRINCIPAL FEATURES OF THE DRAFT C M U ARE:- (A) IT DEALS ONLY WITH THE PERIOD UP TO 31 MARCH 1981 AND NOT UP TO 1983/4 AS THE MALAYSIANS WISHED. WE HAD MADE IT CLEAR THAT IN OUR VIEW PROJECTIONS AS FAR AS FIVE YEARS AHEAD WERE WHOLLY UNRELIABLE: (B) ON THE TRUNK ROUTE M A S GET ONLY THREE DC10S (AS AGAINST TWO NOW) WHEN THEY WERE ASKING FOR FIVE,
ON THE GROUNDS THAT THIS IS THE MAXIMUM JUSTIFIED BY
CURRENT DEMAND EVEN AFTER TAKING ACCOUNT OF ICAP: (C) BA GET PERMISSION TO OPERATE BEYOND KUALA LUMPUR TO MANILA AND JAKARTA (TO WHICH THEY ATTACH IMPORTANCE) BUT WITHOUT 5TH FREEDOM RIGHTS: (D) ON THE REGIONAL ROUTE, MAS CAN INTRODUCE A DAILY AIRBUS SERVICE TO HONG KONG, BUT HAVE FIFTH
FREEDOM RIGHTS BEYOND HONG KONG TO TAIPEH ONLY (NOT TOKYO). IN EXERCISING THESE FIFTH
FREEDOM RIGHTS MAS WILL BE LIMITED TO THE SEATING
CAPACITY OF THEIR PRESENT SERVICES BEYOND HONG
CONFIDENTIAL
/ KONG
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