GR $540
CONFIDENTIAL
CONFIDENTIAL
FM FCO 261515Z SEP 79
TO ROUTINE HONG KONG (GOVERNOR AND BCARFE)
TELEGRAM NO 772 OF 26 SEP
INFO SAVING TOKYO
376
YOUR TELNO 1173: UK/JAPAN AIR SERVICES
HER BUL Макки
RELATED DESTRY NO. 51
2 ✈ SEP 1979
DESK OFFICER
INDEY
1. WE HAVE BEEN GIVING CAREFUL CONSIDERATION TO THE BEST
ARRANGEMENT TO TRY FOR WITH THE JAPANESE FOR AIR SERVICES
POST-MARCH 1980.
4+20
2. AS YOU AND CPA ARE READY TO SEE THE PRESENT ARRANGEMENTS CONTINUE FOR ONE YEAR, SUBJECT TO SOME IMPROVEMENT IN CPA'S TOKYO/SEOUL CAPACITY, AND ANY ATTEMPT TO NEGOTIATE A LONGER TERM AGREEMENT WOULD RAISE THE SENSITIVE QUESTION OF FIFTH FREEDOM
RIGHTS BETWEEN TOKYO AND VANCOUVER, THERE IS A STRONG PRIMA
FACIE CASE FOR GOING FOR A ONE YEAR EXTENSION OF THE CMU. THIS
MIGHT ALSO SUIT US SO FAR AS THE TRUNK ROUTE ARRANGEMENTS ARE
CONCERNED, SINCE WE MAY NOT HAVE FINALLY DECIDED IN SUFFICIENT TIME WHAT LONG TERM ARRANGEMENTS WE WANT FOR THE POLAR/TRANS-SIBERAN
SERVICES AND BA ARE IN ANY EVENT CONTENT TO CONTINUE THEIR PRESENT
ARRANGEMENTS FOR ANOTHER YEAR.
3. TWO QUESTIONS ARISE BEFORE WE FINALLY DECIDE TO GO DOWN THIS
ROAD:
A WOULD WE BE ANY BETTER PLACED TO NEGOTIATE A LONGER TERM AGREEMENT
NOW THAN IN 12 MONTHS TIME?
B WHAT IF ANYTHING CAN OR SHOULD BE DONE ABOUT THE CPA TOKYO/SEOUL
SERVICES FOR THE NEXT YEAR IF WE SETTLE FOR A ONE YEAR EXTENSION?
4. THERE IS NO CLEAR CUT ANSWER TO A AND NO OBVIOUS REASON TO ANSWER
IT IN THE AFFIRMATIVE. WE WOULD HOWEVER NEED TO TAKE ON BOARD THE TOKYO/VANCOUVER REQUIREMENT FOR CPA WHICH WOULD BE BOUND TO BRING THE WHOLE QUESTION OF FIFTH FREEDOM RIGHTS TO THE FORE, THERE
WOULD BE AT LEAST THE POSSIBILITY THAT THE CONSEQUENTIAL ARRANGEMENTS
WE ACHIEVED WOULD BE LESS FAVOURABLE OVER THE NEXT 12 MONTHS THAN A
CONTINUATION OF THE STATUS QUO.
5. ON B, IT IS QUESTIONABLE WHETHER ANYTHING COULD BE DONE TO IMPROVE CPA'S POSITION ON TOKYO/SEOUL OVER THE COMING YEAR. WHEN ROGERS MET TOMITA IN HONG KONG ON FEBRUARY 23/4 THIS YEAR, THE
LATTER DID NO MORE THAN AGREE THAT CPA AND JAL SHOULD DISCUSS IT (BCARFE TEL ALLOT 12 OF 28 FEBRUARY). WHEN ON 13/14 MARCH CPA AND
JAL DID DISCUSS IT, JAL TOOK "A VERY FIRM STAND AGAINST
CONFIDENTIAL
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