>
CONFIDENTIAL
THE HONG KONG PUBLIC WOULD BE AWARE THAT AN EVEN GREATER NUMBER OF SETS WERE LEFT EMPTY ON BA AIRCRAFT ON THE HONG KONG-PEKING SECTOR THAN WOULD HAVE BEEN THE CASE UNDER OPTION A. WHILE BA WOULD RETAIN THE ABILITY TO COMBINE HONG KONG WITH PEKING,
THE DENIAL OF ALL TRAFFIC RIGHTS ON THE HONG KONG-PEKING SECTOR WOULD MAKE THIS OPTION SUBSTANTIALLY MORE EXPENSIVE FOR THEM TH AN OPTION A (SEE PARA 11 BELOW).
7. THE ADVANTAGE OVER OPTION A (AS HONG KONG POINED OUT IN THEIR TELNO.724) IS THAT IT WOULD MAINTAIN THE PRINCIPLE OF EQUALITY IN THE NUMBER OF POINTS FOR REGION AL SERVICES, AND MAY THUS PROVOKE LESS CRITICISM IN HONG KONG (SEMICOLON) BUT IT WOULD GIVE PRECIOUS LITTLE TO EITHER SIDE AND THERE WOULD AB A SUB- STANTIAL IMBALANCE IN PRACTICE SINCE THE CHINESE WOULD CONTINUE TO CARRY HONG KONG TRAFFIC OVER CANTON AND TO DEVELOP CHARTER SERVICES.
8. OPTION C WOULD PROVIDE THE SAME ARRANGEMENTS AS OPTION B, EXCEPT FOR THE HONG KONG-CANTON SERVICE (PARA 5(11) ABOVE).
9. THE ADVANTAGE OF THIS OVER OPTION B IS THAT IT WOULD NOT CONCEDE THE PRINCIPLE OF IMBALANCE OF CAPACITY ON A REGIONAL ROUTE. ON THE OTHER HAND, IT WOULD NOW SCARCELY BE POSSIBLE FOR US TO STOP CAAC'S HONG KONG-CANTON SERVICE (SEMICOLON) AND IF WE WERE TO DO SO THE CHINESE WOULD NO DOUBT REVERT TO CHARTER OPERATIONS. WE THEREFORE REGARD THIS OPTION AS LESS ATTRACTIVE THAN OPTION B AND IN WHAT FOLLOWS WE DO NOT CONSIDER IT FURTHER.
10. THE ARGUMENTS FOR AND AGAINST OPTION D ARE SIMILAR TO THOSE OF OPTION B, BUT WITHOUT THE ONE POSITIVE ADVANTAGE OF THE START OF A TRUNK ROUTE. IF NEGOTIATIONS ARE BROKEN OFF IT MAY PROVE DIFFICULT TO GET THEM STARTED AGAIN. THIS WOULD BE. PARTICULARLY SO IF THE CHINESE WERE TO GET LOCKED INTO PROTRACTED NEGOTIATIONS WITH THE UNITED STATES FOR WHICH THE AMERICANS HAVE BEEN PRESSING. WE MIGHT THEN HAVE TO WAIT ANOTHER YEAR OR TWO BEFORE WE GOT ANOTHER OPPORTUNITY.
EVALUATION FOR BA.
11.
IT IS NOT POSSIBLE TO PROVIDE ANY PRECISE EVALUATION OF THE ALTERNATIVE OPTIONS IN TERMS OF THEIR COSTS AND BENIFITS
4 CONFIDENTIAL
TO BA.
Page 105Page 106
No comments yet.
Private notes are available after approval.