TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 144

GRS 400

CONFIDENTIAL

CONFIDEN

FM HONG KONG 100945Z MAY 79

AKK 1.84./!.

RECEIVED IN REDIRANO. 51 1 1 MAY 1979

MY

TO IMMEDIATE F C O

INDEX

PA

TELEGRAM NUMBER 556 OF 10 MAY

No

INFO PRIORITY KUALA LUMPUR

8115

232

MY TELNO 296: UK/MALAYSIA AIR SERVICES.

see (54A

1. AT OUR MEETING WITH ROGERS (DOT) ON 26 FEBRUARY 1979, WE TOOK STOCK OF WHERE WE STOOD IN RESPECT OF THE AIR SERVICES NEGOTIATIONS AND EXCHANGED VIEWS ON HOW BEST TO PROCEED. WE HAVE MORE RECENTLY CONSIDERED WITH CPA WHAT LINE TO TAKE AT THE NEXT ROUND OF TALKS (DOT TELNO ALLOT 37 OF 30 APRIL). OUR COMMON OBJECTIVES ARE AS FOLLOWS:

A. 3/4TH FREEDOM CAPACITY, ON THE BASIS OF THE AGREEMENT REACHED AT THE FEBRUARY TALKS THAT EACH CARRIER WAS ENTITLED TO A HALF SHARE OF THE TRAFFIC, CPA ARE COMPLETELY REVIEWING THEIR FUTURE CAPACITY/FREQUENCY PLANS FOR WEST MALAYSIA SERVICES BUT, BECAUSE OF THE AUSTRALIAN ICAP COMPLICATIONS, A DEFINITE PLAN

HAS NOT YET BEEN FORMULATED. AS TO MAS, WE AGREE THAT THE AIRLINE SHOULD WORK UP TO A DAILY AIRBUS SERVICE FROM 1 NOVEMBER

1979.

B, 5TH FREEDOM CAPACITY. IN ORDER OF PRIORITY, WE HOPE TO

ACHIEVE

1) NO 5TH FREEDOM RIGHTS FOR EITHER SIDE:

11) A PHASING CUT PROGRAMME OVER A 6 OR 12 MONTH PERIOD FOR BOTH AIRLINES:

1!!) TAIPEI BEYOND HONG KONG FOR MAS (TO MATCH SINGAPORE BEYOND MALAYSIA FOR CPA) AT CURRENT CAPACITY (1048 SEATS): IV) TAIPEI BEYOND HONG KONG FOR MAS AT A LEVEL OF 5 X A300 WEEKLY (1230 SEATS), WITH RECIPROCITY FOR CPA.