TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 28

GR 200

CONFIDENTAL

HEK18H

COFIDENTIAL

FM F C O 271625Z SEP 79

TO IMMEDIATE KUALA LUMPUR

TELEGRAM NUMBER 270 OF 27 SEPTEMBER

INFO HONG KONG (GOV AND BCARFE)

--

YOUR TELNO 351: UK/MALAYSIA AIR SERVICES: DRAFT CMU

1. WE AGREE POINTS A, B, C AND E.

R

PA $25

421

ez (422

2. WE CANNOT AGREE D. THE OMISSION OF RESTRICTIONS ON THE EXERCISE OF FIFTH FREEDOM RIGHTS BETWEEN PENINSULAR MALAYSIA AND SINGAPORE WAS NOT REPEAT NOT INADVERTENT. THE REASONS FOR THEIR OMISSION WERE

A. PARA 12 OF THE DRAFT LETTER FROM MR NOTT TO MR MANICKAVASAGAM

(423)

(OUR TELNO 208 OF 20 JULY) ADDRESSED ITSELF FULLY TO THE QUESTION OF THE FIFTH FREEDOM RIGHTS TO BE EXERCISED BY CPA INCLUDING, 338 AS YOU WILL NO DOUBT POINT OUT TO THE MALAYSIANS THE DELETION OF

RIGHTS WHICH CPA ALREADY HAD. IN AGREEING TO THE LATTER, MR TEBBIT

MADE IT CLEAR TO MR MANICKAVASAGAM IN THEIR MEETING ON 20 JULY THAT IT COULD ONLY BE ON CONDITION THAT CPA HAD FIFTH FREEDOM RIGHTS FOR 7 X L1011 FROM POINTS IN MALAYSIA TO SINGAPORE, JAKARTA AND PERTH. THEREWAS NO QUALIFICATION TO THIS. THEREFORE THE WILSON/I BRAHIM EXCHANGE OF 19 DECEMBER 1975 IS SUPERSEDED BY THE NEW ARRANGEMENTS.

B. THE HEAVY IMBALANCE OF EARNINGS ON THE REGIONAL ROUTES IN MAS'S FAVOUR WHICH IS UNLIKELY TO BE AFFECTED (OTHER THAN POSSIBLY ACCENTUATED) BY THE NEW ARRANGEMENTS.

C. THE LIKELIHOOD OF CPA LOSING ITS FIFTH FREEDOM RIGHTS TO PERTH

UNDER ICAP.

CARRINGTON

*

FILES

MAGD

SEAD

ARGD

MR CORTAZZI

MISS BROWN

MR MURRAY

COPIES SENT

CAD IDOT...

CONFIDENTAL