TNAG-0866-FCO40-1076-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 117

GR 210

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 220804Z OCT 79

TO ROUTINE FOREIGN AND COMMONWEALTH OFFICE

TELNO.1466 OF 22 OCTOBER,

INFO TOKYO.

HER 184/1

451

-PA

zet.

2 3 OCT 1979

See (497

197

YOUR TELNO.772 : U.K/JAPAN AIR SERVICES,

1. WE HAVE CONSULTED CPA AND WE ALSO DISCUSSED FUTURE ARRANGEMENTS WITH ROBERTS, STABLES AND BCARFE HERE ON 15 OCTOBER.

2.

THE CONSENSUS WAS THAT WE SHOULD SEEK A ONE-YEAR EXTENSION OF THE PRESENT ARRANGEMENTS AND AT THE SAME TIME ASK FOR THE UNBLINDING OF THE ONE L1011 FREQUENCY PER WEEK BETWEEN TOK YO AND SEOUL. AS BBCARFE'S TELNO.1444 TO YOU SHOWS, ROBERTS RAISED THE QUESTION OF THIS UNBLINDING WITH NAKATA IN THEIR TALKS LATER ON 15 OCTOBER, AND WE NOW AWAIT THE JAPANESE REACTION WITH INTEREST.

3.

AS REGARDS THE TWO POSSIBLE COMPENSATORY ALTERNATIVES MENTIONED IN PARAGRAPHS 6 AND 7 TEL UNDER REF (AND WE HAVE NO ADDITIONAL ONES TO SUGGEST) IN OUR VIEW THE ONLY INDUCEMENT WHICH MIGHT BE OF REAL VALUE TO THE JAPANESE IN RETURN FOR THIS UNBLINDING IS THE GRANT OF HKG/AKL BUT THIS IS OF TOO HIGH A VALUE TO BE AN ACCEPTABLE (TO US) QUID PRO QUO AND THEREFORE CANNOT BE SERIOUSLY PURSUED. WHILST THE OFFER OF FIFTH FREEDOM RIGHTS BEYOND HKG TO SYDNEY COULD BE CONSIDERED WE AGREE THE JAPANESE WOULD PROBABLY REGARD IT AS A HOLLOW GESTURE. HOWEVER, LET US SEE HOW THE JAPANESE PLAY THE BALL BACK FROM THEIR SIDE

OF THE COURT.

MACLEHOSE

FILES

MAED FED

HK & AD MR CORTAZZI MISS BROWN

COPIES SENT TO CAD/DOT

CONFIDENTIAL