TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 172

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imping their capacity entitlement on the KL/London trunk route, but they are also very keen to increase their services to Hong Kong. Cathay Pacific believe that MAS enjoy too much. capacity already and would like the Malaysian activity reduced rather than increased. Much will depend upon precise traffic figures produced by the airlines, but the regional routes will become a live issue, if and when the Malaysians eventually call for air service talks.

4. Regarding Sir E Youde 's engagements with BA, BCal and Swires (CPA), I know of no immediate air service problems. But he will wish to know that when we were preparing briefs for the Secretary of State's visit to Malaysia, BA and Swires wrote expressing dissatisfaction with the 1979 ASA with the Malaysians, which they believe ved detrimental to the interests

of BA and CPA.

чел

R W Sindon

Maritime, Aviation and Environment Department

2 March 1982

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