TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 176

GAS 1366

CONFIDENTIAL

DESKRY 21010OZ

CONFIDENTIAL

338

HKK 1841, PA Nt 23/7

ALLENTS

23 JUL 979

FM 500 2017552 JUL 79

TO MEDIATE KUALA LUMPUR

TELEGRAM NUMBER 203 OF 20 JULY

INFO PRIORITY HONG KONG (GOVERNORS AND SCARFE), SINGAPORE, BANGKOK MANILA, JAKARTA, CANBERRA AND WELLINGTON.

MIPT: UK/MALAYSIA AIR SERVICES

Sex 358

386

421

1. FOLLOWING IS TEXT OF DRAFT LETTER WITH ANNEX, FROM MR NOTT TO MALAYSIAN MINISTER OF TRANSPORT.

• QUOTE

IN THE COURSE OF CONVERSATION BETWEEN OURSELVES AND OUR COLLEAGUES BETWEEN 16-20 JULY ABOUT AIR SERVICE RELATIONS BETWEEN OUR TWO COUNTRIES, WE REACHED THE FOLLOWING UNDERSTANDINGS:- TRUNK ROUTE

1 BOTH SIDES HOPE THAT THE TRAFFIC ON THE LONDON-KUALA LUMPUR ROUTE CAN BE SO DEVELOPED THAT A DAILY FREQUENCY CAN BE OPERATED BY THE NATIONAL FLAG CARRIERS OF EACH COUNTRY BY THE MID-1980S.

2 BRITISH AIRWAYS (BA) AND MALAYSIA AIRLINE SYSTEM (MAS) MAY OPERATE WIDE BODIED AIRCRAFT BETWEEN LONDON AND KUALA LUMPUR IN EACH DIRECTION. FOR THE TIME BEING, BA WILL OPERATE B747S OR L10113 AND MAS WILL OPERATE DC103. IN DUE COURSE, MAS MAY CHANGE TO B7478. FOR SO LONG AS MAS OPERATE OC10S, BA MAY NOT OFFER FOR SALE MORE THAN THE EQUIVALENT NUMBER OF SEATS PER WEEK ON THEIR 37475. IF MAS DECIDE TO CHANGE TO B747S, THEY MAY ALSO

NOT OFFER FOR SALE HORE THAN THE NUMBER OF SEATS PER WEEK THAT

WOULD HAVE BEEN AVAILABLE HAD THEY OPERATED DC10S. THE

AERONAUTICAL AUTHORITIES OF BOTH SIDES MAY AGREE, HOWEVER,

THAT THIS DE-RATION OF B747S TO DC10 CAPACITY CAN BE LIFTED.

3 IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH 2, MAS AND

BA MAY OPERATE THREE SERVICES A WEEK BETWEEN KUALA LUMPUR AND

LONDON IMMEDIATELY AND FOUR SERVICES A WEEK ON THIS ROUTE FROM

1 APRIL 1930. EACH AIRLINE IS ENTITLED TO INTRODUCE A FIFTH

SERVICE SIX MONTHS AFTER THE START OF THE FOURTH MAS SERVICE

SUBJECT ONLY TO TRAFFIC GROWTH IN ACCORDANCE WITH THE FORMULA

AGREED UNDER THE GUIDELINES ATTACHED TO THIS LETTER (PARAGRAPH

13 BELOW). THEREAFTER PROGRESS TO A DAILY SERVICE AND BEYOND

WILL BE MADE IN ACCORDANCE WITH THE FORMULA.

CONFIDENTIAL

14.