TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 105

INTO

6. MR PARKINSON MAY PREFER NOT TO ENTER INTO

TAILED DISCUSSION ON THE ISSUES, ON THE GROUND THAT TALKS ARE CONTINUING IN LONDON, IN TALKING TO MALAYSIAN MINISTERS, HOWEVER, HE MAY LIKE TO ACKNOWLEDGE THAT THE TALKS ARE PROVING DIFFICULT, BUT THAT IN OUR VIEW THIS IS BECAUSE WE START FROM

DIFFERENT POSITIONS. WE UNDERSTAND THE MALAYSIAN WISH TO INCREASE AIR SERVICES, AND SHARE THEIR VIEW THAT THE GOOD RELATIONSHIP BETWEEN MALAYSIA AND BRITAIN MEANS THAT

EVERY EFFORT SHOULD BE MADE TO REACH A SETTLEMENT. WE HAVE NEVERTHELESS TO TAKE PROPER ACCOUNT OF THE HONG KONG (CPA) INTEREST, FOR WHICH WE ARE DIRECTLY RESPONSIBLE.

BUT IN OUR DRAFT CMU WE HAVE MADE CONSIDERABLE CONCESSIONS TO THE MALAYSIANS RELATIVE TO OUR OPENING POSITION (THE THIRD DC10 ON THE TRUNK ROUTE, FIFTH FREEDOM RIGHTS TO TAIPEH). WE ARE PREPARED TO CONSIDER WHETHER ANY FURTHER SMALL

REPEAT SMALL MOVES CAN BE MADE. BUT WE SEE LITTLE POINT

IN DOING SO WHEN THE MALAYSIANS HAVE NOT MOVED AT ALL TOWARDS US. WE ACKNOWLEDGE THE POLITICAL SENSITIVITY OF THE

ISSUES IN MALAYSIA: THEY IN TURN SHOULD RECOGNISE OUR NEED FOR A

REALISTIC SETTLEMENT WHICH TAKES ACCOUNT BOTH OF THE LEGITIMATE INTERESTS OF HONG KONG, AND THE DANGERS. OF WRITING INTO AN AGREEMENT PRECISE FIGURES FOR FUTURE CAPACITY WHEN WE CANNOT HAVE SUFFICIENT KNOWLEDGE OF CONDITIONS E G FUEL SHORTAGES MORE THAN TWO YEARS AHEAD

TO MAKE THIS REALISTIC.

7. THERE HAS BEEN NO SUBSTANTIVE DISCUSSION OF CONCORDE

SO FAR.

8. FOR YOUR INFORMATION, THE ATMOSPHERE OF THE TALKS

HAS BEEN CALM AND FRIENDLY ALL THE TIME. AS WE

EXPECTED, HOWEVER, NOOR HAS BEEN RIGID, INEPT AND UNYIELDING, AND RELUCTANT TO ENGAGE IN ANY SERIOUS GIVE AND TAKE.

CARRINGTON

FILES:

MAED

SEAD

H K & G D

SPD

MR CORTAZZI MR MURRAY MISS BROWN

[COPIES SENT TO CAD/LOT]

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