TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 30

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ADDITIONAL FIFTH FREEDOM CONCESSIONS TO CPA AND INDICATED THAT THE

JCAB HAD OBJECTED EVEN TO THE VERY LIMITED CONCESSION OF ALLOWING CPA TO OPERATE THEIR DESIRED CAPACITY WITH LIMITED BLINDING. AL SAID THAT ANY INCREASE IN CPA'S FIFTHS TOKYO/SEOUL WAS A MATTER FOR

GOVERNMENTS, DESPITE THE FACT THAT THEY HAD AGREED WITH CPA IN THE 1977 COMMERCIAL AGREEMENT TO AN INCREASE FROM THE 7 FREQUENCIES PERMITTED IN THE CMU TO THE PRESENT 11.

6. THERE SEEMS NO SIMPLE WAY OF OBTAINING ANY RELAXATION FROM THE JAPANESE, THE OBVIOUS WAY WOULD BE TO OFFER JAL A RELAXATION OF THE OFF SETTING INHIBITION-ON JAL'S FIFTHS BEYOND. HONG KONG TO SYDNEY,

BUT YOU MIGHT THINK THIS A POOR BARGAIN AND IN ANY EVENT THE JAPANESE

MIGHT CONSIDER IT A HOLLOW GESTURE IN VIEW OF THE AUSTRALIAN ICAP PHILOSOPHY.

7. AN ALTERNATIVE MIGHT BE TO OFFER JAL LIMITED BEYOND RIGHTS TO

AUCKLAND WHICH MIGHT BE OF INTEREST TO THEM IN THE CONTEXT OF FORTHCOMING JAPAN/NEW ZEALAND NEGOTIATIONS. BUT THE IMPLICATIONS OF THAT ARE FAR REACHING, PARTICULARLY ON CPA'S AMBITIONS FOR A HONG KONG/AUCKLAND SERVICE, AND IT IS PROBABLY NOT WORTH

CONSIDERING SERIOUSLY.

8. IF YOU DO NOT THINK THAT WE SHOULD OFFER EITHER OF THE ABOVE

INDUCEMENTS TO THE JAPANESE, WE WOULD BE WILLING TO CONSIDER OTHERS THAT YOU MAY CARE TO SUGGEST. IF AT THE END OF THE DAY THERE

IS NOTHING WE HAVE TO OFFER, WE WOULD STILL BE PREPARED TO SEEK A ONE YEAR'S EXTENSION AND ASK FOR THE UNBLINDING OF THE PRESENT

ONE L1011 FREQUENCY PER WEEK. BUT IF THE JAPANESE SAY NO TO THE LATTER, AS IS QUITE LIKELY, WE SHALLL PROBABLY HAVE TO ACCEPT IT IN RETURN FOR A ONE YEAR'S EXTENSION OF THE PRESENT CMU,

CARRINGTON

FILES

MAED

HKD

FED

MISS BROWN

MR MURRAY

COPIES SENT TO CAD/DOT

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