TNAG-0871-FCO40-1081-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 75

CONFIDENTIAL

POINT IN SAUDI ARABIA IN THE UK ROUTE IN THE ROUTE SCHEDULE ANNEXED

TO THE AGREEMENT. NO PROVISION IS MADE IN THE AGREEMENT FOR **POINTS

BEYOND'

COMMENT

3 IT IS UNLIKELY THAT THERE WOULD BE ANY OBJECTIONS IN BAHRAIN, DUBAI

OR SHARJAH TO THE OPERATION THROUGH THOSE POINTS OF AN ADDITIONAL UK-

HONG KONG SERVICE WITHOUT TRAFFIC RIGHTS BY A THIRD UK CARRIER,

WE WOULD ALSO NOT ANTICIPATE ANY DIFFICULTY IN NEGOTIATING A TECHNICA

STOP FOR SUCH A SERVICE IN KUWAIT. THE SAUDI ARABIAN ATTITUDE TOWARDS EXTENSION OF SERVICES TO POINTS BEYOND IS RESTRICTIVE AND WE WOULD NO

EXPECT TO OBTAIN HONG KONG AS A POINT BEYOND FROM THEM.

4 THE PRESENT ATTITUDE OF THE GULF STATES TOWARDS ADDITIONAL

AIRLINES ON THE GULF-LONDON ROUTE IS NEGATIVE. IN ADDITION TO THE THIRD/FOURTH FREEDOM CARRIERS (GULF AIR AND BA) THERE ARE FIVE AIR-

LINES EXERCISING FIFTH FREEDOM TRAFFIC RIGHTS AND A FURTHER SIX

CARRYING SIXTH FREEDOM TRAFFIC. THE ATTITUDE OF THE STATES IS

UNLIKELY TO CHANGE IN THE FORESEEABLE FUTURE AND IT WILL BE VERY

DIFFICULT INDEED FOR THE UK TO NEGOTIATE TRAFFIC RIGHTS FOR

ADDITIONAL SERVICES BY ANOTHER UK CARRIER EXCEPT AT A PRICE THAT

MIGHT PROVE UNACCEPTABLE.

5 THE ATTITUDE OF THE GULF STATES TO TRAFFIC RIGHTS FOR AN ADDITIONAL

CARRIER ON THE GULF-HONG KONG ROUTE IS ALSO LIKELY TO BE NEGATIVE, AT

PRESENT-BA, CPA AND GULF AIR OPERATE ON THIS ROUTE. THE LATTER TWO OPERATE UNDER A TEMPORARY TRIAL ARRANGEMENT WHICH COMMENCED ON 1

NOVEMBER 1978. THIS ARRANGEMENT IS NOW UNDER REVIEW. IT WILL BE VERY

DIFFICULT INDEED FOR THE UK TO NEGOTIATE TRAFFIC RIGHTS FOR A THIRD UK CARRIER, WHICH THE GULF STATES WOULD SEE AS DILUTION OF THEIR AIRLINE'S TRAFFIC ON A ROUTE TO WHICH THEY HAD ONLY GAINED ACCESS

THEMSELVES COMPARATELY RECENTLY.

6 THE ATTITUDE OF KUWAIT TO TRAFFIC RIGHTS FOR AN ADDITIONAL CARRIER ON THE GULF-HONG KONG ROUTE IS NOT KNOWN. IT IS JUST POSSIBLE THAT KUWAIT MIGHT BE PREPARED TO AGREE A HONG KONG-KUWAIT ROUTE FOR A BRITISH CARRIER ON A RECIPROCAL BASIS. THE MET VALUE OF THIS TO BRITISH AVIATION INTERESTS WOULD NEED TO BE ASSESSED.

OTHER INTERMEDIATE POINTS

7 IN THE ABSENCE OF SPECIFIC INFORMATION, WE ARE UNABLE TO COMMENT ON THE IMPLICATIONS OF A STOP WITH TRAFFIC RIGHTS BY LAKER AT ANY OTHER POINT IN THE MIDDLE EAST OR AT A POINT IN THE FAR EAST.

OTHER IMPLICATIONS

8 THE HONG KONG AIR TRANSPORT LICENSING AUTHORITY MAY ALSO WISH

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CONFIDENTIAL

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