TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 159

CONFIDENTIAL

4. WE HAVE NO OBJECTION TO THE SUBSTITUTION OF TWO B-727 OPERATING

IN TANDEM. HOWEVER, BOTH WE AND CPA ARE CONCERNED THAT WHILE UNDER SIA'S PROPOSAL THE CAPACITY REMAINS UNCHANGED, THEY ARE APPARENTLY

TRYING TO GET AROUND THE AGREED FREQUENCY RESTRICTIONS BY USING

SMALLER AIRCRAFT AND MOUNTING WHAT IS IN EFFECT A SECOND DAILY

FREQUENCY ON THE ROUTE.

5. WE SHOULD BE GRATEFUL FOR YOUR ADVICE AS TO HOW TO RESPOND

TO SIA'S PROPOSAL.

MACLEHOSE

FILES

MAED

HK & GD

SEAD

MR CORTAZZI

MISS BROWN

[COPIES SENT TO CAD/DOT].

2

CONFIDENTIAL

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