TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 82

CONFIDENTIAL

HKK 184/1

382

RECOIVEIN IN REGISTRY NO,

21 AUG (79

OFFICER

GRS 180

CONFENTIAL

FM HONG KONG 200907Z AUG 79

TELEGRAM NUMBER 1187 OF 20 AUGUST

TO PRIORITY F C O

INFO MANILA

See (393

INDE

2344-YOUR TELNO 179 TO MANILA: UK/PHILIPPINES AIR SERVICES.

Sy_YOUR

1. THE PAL/CPA COMMERCIAL AGREEMENT HAS NOW BEEN APPROVED BY HMG (THOUGH APPARENTLY NOT BY THE PHILIPPINES CAB), AND WE THEREFORE HAVE ONLY ONE POINT TO RAISE AT THE TALKS WHICH IS PROVISION FOR A RECIPROCAL EXCHANGE OF A NEW ROUTE BETWEEN HONG KONG AND CEBU.

2. WITH REGARD TO THE THREE NEW ARTICLES TO BE ADDED TO THE ASA (YOUR TELNO 22 TO MANILA), THE IMMIGRATION AND REMISSION OF REVENUES PROPOSALS WOULD GENERALLY ACCORD WITH HONG KONG PRACTICE,

AND WE HAVE NO OBJECTION TO THE SECURITY ARTICLE.

3. PROVISION ON A RECIPROCAL BASIS FOR THE EXEMPTION OF THE DESIGNATED AIRLINES FROM TAXATION (MANILA TELNO 80 TO FCO) WOULD REQUIRE A DOUBLE TAXATION AGREEMENT, WE HAVE NOT CONCLUDED ANY AGREEMENTS OF THIS NATURE AND WE WOULD PREFER NOT TO PURSUE THE

SUGGESTION,

4. IN LIGHT OF THE ABOVE, IT APPEARS THAT THERE IS NO NEED FOR HONG KONG TO BE REPRESENTED AT THE FORTHCOMING TALKS. WE AND CPA WOULD BE CONTENT FOR DOT TO LOOK AFTER OUR INTERESTSJ

MACLEHOSE

FILES

[COPIES SENT TO CADI DOT]

MAED

SEAD HKJ G D

MISS BROWN

MR MURRAY

CONFIDENTIAL