TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 156

CONFIDENTIAL

6.

MITRA WAS AWARE THAT I SHALL SHORTLY BE GOING ON LONG VE AND EXPRESSED THE HOPE THAT (ASSUMING THAT HE COULD ORGANISE A SUITABLE PNG GOVERNMENT DELEGATION TO COME TO HONG KONG) I WOULD BE ABLE TO GET AUTHORITY TO NEGOTIATE WITH THEM BEFORE GOING AWAY. I REPLIED THAT THE WEEK BEGINNING 14 MAY (WITH THE EXCEPTION OF 15 MAY WHEN MR ROGERS WILL BE SEEING THE HONG KONG GOVERNMENT) WOULD BE POSSIBLE FOR ME HERE IN HONG KONG. I WENT ON TO SAY THAT SUCH NEGOTIATIONS NEED NOT BE WITH BCARFE PERSONALLY, BUT MIRRA SAID THAT HE WOULD PREFER THAT PATTERN EVEN IF IT MEANT WUITING UNTIL SEPTEMBER. HE RECOGNISED THAT, IF PNG REMAINED UNWILLING TO CONCEDE CPA'S AUCKLAND REQUIREMENT IN SOME FORM OR AT SOME TIME, THERE COULD BE LITTLE POINT IN STARTING GOVERNMENT NEGOTIATIONS. SINCE HE NEVERTHELESS SAID HE WOULD PURSUE THE MATTER WITH HIS GOVERNMENT ON RETURN TO PORT MORESBY TOMORROW

I DEDUCE THEREMUST BE SOME GIVE IN THEIR POSITION. HE CONCLUDED BY SAYING HE WOULD TELPHONE ZAU EARLY NEXT WEEK TO ADVISE WHETHER TALKS IN HONG KONG ON 14 MAY WERE DESIRED BY HIS

AUTHORITIES.

7. THROUGHOUT THESE DISCUSSIONS BOTH PARTIES EXPHASISED THAT THEY WERE INFORMAL AND WITHOUT COMMITMENT: AND THAT FORMAL TALKS COULD NOT BEGIN WITHOUT THE PNG AUTHORITIES FORMALLY SUBMITTING A REQUEST THROUGH THE HIGH COMMISSION IN PORT MORESBY. I WOULD BE GRATEFUL FOR YOUR CONFIRMATION THAT, IF FORMAL TALKS DO TAKE PLACE, I SHOULD MAINTAIN THE POSITION WHICH I HAVE SO FAR ONLY EXPRESSED INFORMALLY.

8. I SHOULD PERHAPS ADD THAT THERE ARE ONE OR TWO CURRENT PRACTICES WHICH MAY WELL MAKE IT PRUDENT TO INCLUDE IN ANY NEW AGREED MINUTE SOME PHRASEOLOGY SPECIFI ALLY REQUIREING FAIR AND EQUAL TREATMENT. YOU WILL BE ALREADY AWARE OF THE PROBLEMS (WHICH SHOULD BE AT LEAST PARTIALLY SOLVED BY A CPA/ANG POOL) ASSOCIATED WITH THE VOLUME OF TRAFFIC DIRECTED TO ANG BY PNG GOVERNMENT WARRANT. ADDITIONALLY, THERE IS PNG LEGISLATION PROHIBITING THE CARRIAGE OF FREIGHT ON CC CONDITIONS. ANG IN FACT CARRIES A LARGE VOLUME OF SUCH TRAFFIC BUT THE LAW WAS INVOKED AGAINST CPA WHEN THEY SOUGHT TO MATCH ANG PRACTICE.

FCO PASSS SAVING MANILA AND WELLINGTON.

MACLEHOSE

ALLOT DISTRIBUTION

MAED HK & GD SPD

[REPEATED AS REQUESTED]

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CONFIDENTIAL