TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 115

CONFIDENTIAL

255

GRS 350

ONFIDENTIAL

FM HONG KONG 280911Z MAY 79

TO PRIORITY DOT

TELEGRAM NUMBER ALLOT 37 OF 28 MAY

HKKI84/1

REUMINIO IR BEARVY 90. 51

I

29 MAY 1979

DESK OFACER INDEX

Ло

PLEASE PASS THE FOLLOWING TO LATHAM, HONG KONG GOVERNMENT REPRESENTATIVE AT CURRENT UK/MALAYSIA TALKS.

UK/MALAYSIA AIR SERVICES.

1. IN A LETTER TO DCA, COPIED TO BCARFE, CPA HERE HAVE PROVIDED FURTHER INFORMATION ON CAPACITY PLANNING FOR HKG/PENINSULA

MALAYSIA ROUTES.

2. BCARFE WILL BE FORWARDING FULL TEXT TO DOT BUT GIST OF LETTER

IS:

A. FUTURE PLANNING-GREATLY AFFECTED BY DATE OF WITHDRAWAL OF CPA'S 5TH FREEDOM RIGHTS KUL/PER AND JKT/PER BY AUSTRALIA AND NATURE OF NEW UK/MALAYSIA ASA.

B. CPA PLANNING 4TH FREQUENCY HKG/PEN/SIN VV LATE 1979.

C. IF ONLY 3/4TH FREEDOM EXCHANGE WITH MALAYSIANS WAS ACHIEVED, CPA PLAN HKG/PEN VV 4 X 707 AND HKG-KUL VV 3 X 707 WEEKLY.

KUL MAY ALSO BE SERVED ON HKG/PEN VV SERVICE TO GIVE DAILY 707 WHICH SHOULD BE SUFFICIENT UNTIL 1981. CPA ANTICIPATE REPLACING 707S WITH TRISTARS ON HKG/KUL VV FROM NOVEMBER 81 AND ON HKG/PEN - VV FROM APRIL 82.

D. IF MODEST 5TH FREEDOM EXCHANGE IS MADE AND CPA'S 5TH FREEDOM RIGHTS TO PERTH ARE SOON REMOVED, CPA EXPECT TO OPERATE THESE SERVICES WEEKLY AS FOLLOWS :

(1) HKG /PEN/SIN VV 4 X 707 UNTIL MAY 1980 (MAY - AUGUST 1980 2 X 707 AND 2 X TRISTAR, AND 4 X TRISTAR FROM AUGUST 1988).

(2) HKG/KUL/JKT VV 3 X 707 (3 X TRISTAR FROM MARCH 1980). IF POSITION ON RIGHTS TO PERTH NOT CLARIFIED BY END OF CURRENT TALKS CPA HOPE FOR SOME QUOTE PHASED DOWN UNQUOTE RIGHTS FOR KUL/PER TILL SAY END 1979.

E. WITH REGARD TO 5TH FREEDOM RIGHTS, IF MAS RETAIN RIGHTS TO OPERATE BEYONG HKG, CPA PROPOSE THAT SUCH CONCESSION MUST BE ACCOMPANIED BY QUOTE COMMITMENT BY THE MALAYSIAN GOVERNMENT NOT TO PERMIT MAS TO UNDERCUT IATA OR OAA FARES NOR TO SEEK MARGINS ON THESE SECTORS UNQUOTE.

CONFIDENTIAL

/ 3. SOUTH CHINA