TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 112

3. OVERRIDE COMMISSION. IF YOU FEEL OBLIGATED TO CONTINUE IT

TILL END OCT WE WILL GO ALONG WITH THIS BUT IN VIEW OF FACT THAT CPA HAVE SAID THEY WILL RELUCTANTLY STAND THE COST WE WOULD PREFER NOT TO SEE THE FARES TEMPORARILY INCREASED. IF YOUR MINISTER WANTS TO CONTINUE IT BEYOND OCT WE WOULD LIKE TO CONSULT FURTHER BUT CERTAINLY IF WE WERE TO GO ALONG WITH THAT WE WOULD EXPECT FARES EX AUSTRALIA TO BE INCREASED ACCORDINGLY. OUR VIEWS CONCERNING THIS ASPECT IN HONG KONG REMAIN UNCHANGED

FROM THOSE PREVIOUSLY REPORTED.

4. ASIAN ADD-ONS. 4. ASIAN ADD-ONS. WE WOULD BE PREPARED TO ACCEPT AS AN INTERIM

MEASURE ADD-ONS AT ALREADY AGREED OAA LEVELS PROVIDED THEY WERE

NOT EXPLICITLY IDENTIFIED AS SUCH. HOWEVER WE HAVE OTHER AND

MORE SERIOUS RESERVATIONS ABOUT THE ADD-ONS AS PROPOSED IN THE

FILING BY CX. THIS RELATES TO THEIR EXCLUSIVITY TO CX. WE CANNOT

ACCEPT THIS EVEN THOUGH THE PROPOSAL IS CONFINED TO ADD-ONS FOR

TRAVEL EX AUSTRALIA ONLY. ONCE A PAX TRANSFERS AT HONG KONG ON

TO A SERVICE OPERATED UNDER UK'S BILATERAL AGREEMENT WITH THE

COUNTRY OF INTENDED DESTINATION HE BECOMES A THIRD/FOURTH FREEDOM

PAX UNDER THAT BILATERAL AND AS SUCH THE FARE AT WHICH HE TRAVELS

MUST BE FREELY AVAILABLE TO THE DESIGNATED CARRIER OF THE COUNTRY

CONCERNED. WE MAY NEED TO DISCUSS THIS FURTHER WITH YOU AND THE

HONG KONG GOVERNMENT AND UNLESS YOU AND THEY ARE PREPARED TO SEE THE EXCLUSIVITY CONDITION DROPPED WE THINK IT BETTER, RATHER THAN DELAY THE ANNOUNCEMENT, TO EXCLUDE THIS ASPECT FROM THE CURRENT FILING. WE ARE CONSULTING THE HONG KONG GOVERNMENT ON THIS.

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