TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 35

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CONFIDENTIAL

AWK FELL

DES

2 4 SEP 1979

CONFIDENTIAL

FM HONG KONG 240840Z SEP 79

INDEX

TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE

TELNO.1325 OF 24 SEPTEMBER,

INFO PRIORITY MANILA.

૧૦૯ ૦૯

YOUR TELNO.733 : U.K/PHILIPPINES AIR SERVICES.

1. IT IS NOW CLEAR THAT THE PROBLEM OF CAPACITY ON THE HONG KONG/MANILA ROUTE WILL NOT BE RESOLVED BY THE AIRLINES IN ADVANCE

OF THE FORTHCOMING TALKS AND IT WILL THEREFORE NEED TO BE INCLUDED ON THE AGENDA. ADCOCK WILL BE REPRESENTING THE HONG KONG GOVERNMENT AND MCARTHUR WILL REPRESENT CPA, AT THE FORTH-

COMING TALKS.

2. 50 FAR AS DETAILED BRIEFING IS CONCERNED (PARA.3 OF TEL UNDER

REF), IT WOULD BE HELPFUL IF THIS COULD TAKE PLACE ON THE

MORNING OF 1 OCTOBER.

3. YOU WILL WISH TO KNOW THAT CPA INTEND TO TERMINATE THE CPA/PAL POOL AND PROPOSE THAT A CAPACITY CONTROL MECHANISM BE INCORPORATED IN THE GOVERNMENTAL AIR SERVICES ARRANGEMENTS. THIS WILL INVOLVE GOVERNMENTS UNDULY IN THE DETAIL OF CAPACITY PLANNING AND PROVIDE FOR A RATHER CUMBERSOME MACHINERY BUT, IN VIEW OF PAL'S INTRANSIGENCE, WE SEE NO ALTERNATIVE.

MACLEHOSE

FILES

MAED

HKOGD SEAD

MISS BROWN

MR MURRAY

[COPIES SENT TO CAIRI DOT]

CONFIDENTIAL