TNAG-0869-FCO40-1079-Air-services-between-China--Hong-Kong-and-the-UK-1979 — Page 44

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HAVE ADVERSE REPERCUSSIONS ON THEIR AIRCRAFT

USAGE.

THEIR PROBLEMS WOULD, BE FURTHER

COMPOUNDED BY THE FACT THAT THEIR FLEET IS A MIX

OF THE SHORTER PANGE 136 TYPE AND THE LONGER PANGE

236 TYPE B747. BA HAVE ALSO ESTIMATED THAT IF

THEY WERE TO SWITCH TO GATWICK A PART OF THEIR

B747 OPERATION ON THE SCALE REQUIRED TO JUSTIFY

ITSELF AS A WORKABLE PROPOSITION, THEY WOULD

NEED TO PURCHASE AN ADDITIONAL P747 IN ORDER TO

MAINTAIN THEIR PRESENT RATE OF AIRCRAFT

UTILISATION.

2. WE ARE THEREFORE UNLIKELY TO MEET THE CHINESE ON THE 'EQUAL OPERATING OPPORTUNITY' POINT EVEN AFTER 1983, AND SHOULD NOT LEAD THEM TO RELIEVE WE WILL. HOWEVER, WE AGREE THAT IT WOULD BE

UNREASONABLE AND TACTICALLY UNWISE FOR US TO CLOSE THE DOOR

AGAINST THE POSSIBILITY OF ANY FUTURE DISCUSSION OF THE

QUESTION WHEN BA ONITS HONG KONG FROM THE TRUNK ROUTE

(ALTHOUCH THE CHINESE, OF COURSE, ARE NOT AWARE THAT THIS WILL BE AS EARLY AS 1983).

YOU MAY THEREFORE SAY

IF THE CHINESE RAISE THE QUESTION THAT HE CANNOT

MAKE ANY FIRM COMMITMENT TO THEM ABOUT OUR LIKELY

ATTITUDES TO THE GATWICK/HEATHROW POINT AT SOME UNSPECIFIED

FUTURE DATE.

BUT IT WOULD OF COURSE RE OPEN TO THEM

TO RAISE THE CUESTION ACAIN, WHEN BA STARTS FLYING

LONDON-PEKING DIRECT, AND WE SHOULD BE PREPARED TO CONSIDER

THE QUESTION THEN IN THE LIGHT OF ALL THE CIRCUMSTANCES AT THE

TIME.

3.

PARAGRAPH 4 OF TUR, BA ARE CONTINUING TO SERVE

COLOMBO FROM HEATHROW. LIKEWISE, THEY WILL SERVE MANILA

FROM HEATHROW, IF WE PEACH AGREEMENT ON THE INTRODUCTION OF

SERVICES. BRITISH CALEDONIAN MOT BA SERVE ROGOTA AND OPERATE

FROM CATWICK.

CARRINGTON

FILES

MAED

FED

HK & GD

LEGAL ADVISERS

MR CORTAZZI MISS BROWN MR MURRAY

[COPIES SENT TO CAD/DOT]

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