TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 187

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FM FCO 18163OZ JULY 79

TO IMMEDIATE HONG KONG (GOVERNOR AND BCARFE)

TELEGRAM NUMBER 559 OF 18 JULY

OJR TELNO 551 UK/MALAYSIA AIR SERVICES

FOLLOWING FROM ADCOCK (GHK) FOR DCA

89.51

L

O JUL 1979

1. TALKS CONTINUED AT POLITICAL LEVEL TUESDAY AFTERNOON AND TODAY (18/7) WITH ROBERTS AND BRYANT REPRESENTING UK AT OFFICIAL LEVEL.

2. THIS MORNING, UK REPEATED PROPOSALS LEFT ON TABLE AT END OF

PREVIOUS ROUND AS UK WORKING PAPER NO 3. MALAYSIANS REJECTED IT

AGAIN, ASKING FOR CONTINUATION OF 5THS TO TOKYO, 8TH A300 KUALA LUMPUR-HONG KONG FROM DECEMBER 1980 INSTEAD OF APRIL 1981, AND WIDE-BODY SERVICE TO EAST MALAYSIA.

3. FOLLOWING CONSULTATION CAD/CPA, GHK RESPONSE WAS NO OBJECTION TO 8TH A300, PROVIDED IT WAS SUBJECT TO DEMAND AND INTER-CARRIER AGREEMENT, AND NO OBJECTION TO WIDE-BODY SERVICE TO E MALAYSIA, PROVIDED CAPACITY LIMITED TO 2 X 707S WHILE CPA OPERATED 707S

ON THE ROUTE.

4. AS FOR 5THS TO TOKYO, CPA HAD ALREADY POINTED OUT THAT PRESENT CAPACITY BEYOND HONG KONG GIVES MAS 1048 SEATS, WHEREAS 5 X A300S WOULD GIVE 1230 SEATS AND IF THE POINT IS CONCEDED, CPA SHOULD

GET EQUIVALENT INCREASE. SINCE CPA WISH TO HAVE FACILITY OF A

DAILY L1011 TO PENINSULAR MALAYSIA, WITH 3 PER WEEK OPERATING

HONG KONG-KUALA LUMPUR-JAKARTA-PERTH AND 4 PER WEEK HONG KONG-

PENANG-SINGAPORE, UK SIDE WILL PROPOSE THIS IN EXCHANGE.

CARRINGTON

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