TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 117

GR 265

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 250805Z MAY 79

TO PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TELNO.645 OF 25 MAY,

INFO PRIORITY: KUALA LUMPUR,

наківні

MEN 184/353/F

1 JUN 1979

PEKING (FOR ROGERS AND KEEP)

Chislei

BCARFE HONG KONG.

KUALA LUMPUR TELNO.145 U.K/MALAYSIA A.S. A TALKS.

1. THE STRESS PLACED BY THE MALAYSIANS ON QUOTE WIDER INTERESTS UNQUOTE SUGGESTS THAT THEIR CASE IS WEAK IN AVIATION TERMS. H.M.G'S POLICY HAS FOR SOME TIME BEEN TO DEAL WITH AIR SERVICES MATTERS ON THEIR OWN MERITS AND NOT TO TRADE OFF AIR TRAFFIC RIGHTS FOR OTHER BENEFITS. SUCH A LINE HAS BEEN FOLLOWED, FOR EXAMPLE, IN OUR DEALINGS WITH THE THAIS. WE WOULD SUPPORT THE CONTINUATION OF SUCH A POLICY.

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2. THE MALAYSIAN HOPE TO MAINTAIN EXISTING FIFTH FREEDOM RIGHTS,

AT LEAST SO FAR AS SECTOR BEYOND HONG KONG ARE CONCERNED, IS NOT ONE THAT WE CAN SUPPORT. OUR VIEWS ON THIS TOPIC ARE SET OUT IN OUR TELNO.556 OF 10 MAY. WE FULLY APPRECIATE THAT FIFTH FREEDOM RIGHTS WILL BE DIFFICULT TO SETTLE BUT THE MALAYSIANS

HAVE HAD A GOOD RUN FOR A LONG PERIOD AND, DOUBTLESS, HONG KONG

EARNINGS FEATURED PROMINENTLY IN THE MAS RECORD PRE-TAX PROFITS

OF DOLLARS 21.96 MILLION FOR THE YEAR ENDED MARCH 31, 1978 (ACCORDING TO THE NEW STRAITS TIMES). UNFORTUNATELY WE DO NOT HAVE MORE RECENT FIGURES BUT WE HAVE NO REASON TO BELIEVE THAT

PROFITS HAVE DIMINISHED.

3. CONCORDE IS A MATTER FOR H.M.G, BUT WE SUPPORT THE POLICY SET OUT FOR U.K NEGOTIATORS IN THE PAPER DATED 12 MAY 1978.

MACLEHOSE

FILES MAED SEAD

HK & JD

MR BUTLER MR CORTAZZI MR MURRAY

[COPIES SENT TO CAD/DOT]

CONFIDENTIAL