CONFIDENTIAL
WEEK WITH FIFTH FREEDOM RIGHTS FROM BRUSSELS TO LONDON SUBJECT TO EQUIVALENT RIGHTS FOR BA FROM KUALA LUMPUR TO MANILA, AND A POSSIBLE 8TH AIRBUS ON THE REGIONAL ROUTE FROM 1.4.81, PROVIDED THAT TRAFFIC CONTINUES TO DEVELOP AS AT PRESENT EXPECTED) HAVE STIP TO BE PUT TO, BRITISH MINISTERS, AND EVEN IF MINISTERS APPROVE THEY. WILL BE AVAILABLE ONLY IN THE CONTEXT OF A FINAL SETTLEMENT ACCEPTABLE TO BOTH SIDES. THEY ARE CERTAINLY NOT (PEPEAT NOT)
JUST ANOTHER STAGE IN THE BARGAINING PROCESS. THE MALAYSIANS CANNOT LOOK FOR YET FURTHER CONCESSIONS FROM US.
5. IF THE MALAYSIANS HINT AT ANY THREAT TO CONCORDE, YOU SHOULD SAY THAT IT SEEMS TO US VERY DIFFICULT INDEED TO REACH AGREEMENT ON AIR SERVICES IN SUCH A CONTEXT. AS STEELE TOLD NOOR (PARA 3 OF OUR TELNO 129), WE CAN ONLY CONTEMPLATE MAKING THE FURTHER CONCESSIONS OF WHICH WE HAVE SPOKEN IF WE ARE ASSURED THAT CONCORDE SUPERSONIC
FLIGHTS WILL CONTINUE.
6. IN SHORT A MAJOR OBJECTIVE FOR US NOW IS TO ENSURE THE MALAYSIANS REALISE THAT WE ARE QUITE PREPARED FOR NO AGREEMENT TO BE REACHED, IN WHICH CASE THE AIR SERVICE ARRANGEMENTS AT PRESENT IN FORCE WILL CONTINUE, AT LEAST AS FAR AS SUBSONIC SERVICES ARE CONCERNED. IN AIR SERVICE TERMS THE STATUS QUO SUITS US QUITE WELL. WE DOUBT IF IT WILL SUIT THE MALAYSIANS, ESPECIALLY AS WE GET NEARER OCTOBER, WHEN THE FIRST AIRBUS WILL BE DELIVERED FOR THE MAS REGIONAL ROUTE, AND AT THE SAME TIME A DC10 WILL IN CONSEQUENCE BE
RELEASED FOR THE TRUNK ROUTE.
CARRINGTON
FILES
MAED
SEAD
SPD HK 4 &D MR CORTAZZI MR MURRAY MISS BROWN
[COPIES SENT TO CAD DOT]
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CONFIDENTIAL
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