TNAG-1177-FCO40-1479-Air-services-between-Hong-Kong-and-South-East-Asia-1982 — Page 108

CONFIDENTIAL

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TO BE JUSTIFIED BY THE TERMS OF THE 1979 CMU.

4.

ANY INCREASE OF CAPACITY ON THE TRUNK OR THE REGIONAL

ROUTES WILL FALL TO BE RESOLVED IN ACCORDANCE WITH THE

CONFIDENTIAL MEMORANDUM OF UNDERSTANDING OF 1979 AND IN THE

LIGHT OF SUBSTANTIAL TRAFFIC FIGURES. IF THE MALAYSIAN

GOVERNMENT WISH TO MAKE SPECIFIC PROPOSALS FOR INCREASES IN

CAPACITY THERE IS NO ALTERNATIVE TO THEIR PROPOSING AIR SERVICES

CONSULTATIONS SO THAT THE CASE FOR CAPACITY INCREASES CAN BE

EXAMINED AND DISCUSSED. ALTHOUGH WE CAN MAKE NO OPEN-ENDED

COMMITMENTS, WE WILL OF COURSE HONOUR THE TERMS OF THE 1979 CMU

AND WILL GIVE SYMPATHETIC CONSIDERATION TO THEIR REQUESTS WITHIN

THAT CONTEXT. WE SEE NO REASON WHY THE MATTER SHOULD NOT BE

AMICABLY RESOLVED IN THE NORMAL WAY, AND WE ARE WILLING TO HOLD

AIR SERVICE CONSULTATIONS FOR THE PURPOSE IF THAT IS WHAT THE

MALAYSIANS WANT. WE CANNOT HOWEVER PREJUDGE OUR RESPONSE ON

EITHER THE REGIONAL OR THE TRUNK ROUTE BEFORE WE HAVE GONE

THROUGH THE FIGURES WITH THE MALAYSIANS, WITH THE AIRLINES OF

BOTH SIDES PRESENT IN THE USUAL WAY. ISHAK WILL WE HOPE UNDER-

STAND THAT WE HAVE TO PAY REGARD TO OUR RELATIONS WITH OUR OWN

AIRLINES AND WITH THE HONG KONG GOVERNMENT.

5.

FOR YOUR OWN INFORMATION, BOTH ROBERTS AND STEVENS (DOT)

ARE HEAVILY COMMITTED TO AIR SERVICE NEGOTIATIONS BETWEEN NOW

AND THE END OF MARCH. IF ISHAK SEEKS EARLY TALKS WE WILL DO

OUR BEST TO MEET HIS WISHES, BUT EVEN IF WE CAN FIT HIM IN

DURING THE NEXT SIX WEEKS IT WILL ALMOST CERTAINLY HAVE TO RE

IN LONDON.

6.

FOR YOUR OWN INFORMATION AGAIN, MAS PROPOSED SCHEDULES

FOR THE SUMMER OPERATING PERIOD AS RECENTLY SUBMITTED TO DOT

PROVIDE FOR UNLIMITED CAPACITY B747 SERVICES ON THE TRUNK ROUTE

AND FOR A NUMBER OF DC-10 SERVICES ON THE REGIONAL ROUTE. AS

A ROUTINE MATTER IN CONFORMITY WITH THE CURRENT ARRANGEMENTS

AGREED BETWEEN THE TWO GOVERNMENTS DOT HAVE APPROVED THE FORMER

SUBJECT TO A 295 SEAT RESTRICTION AND NOT APPROVED THE LATTER.

POSITION ON TRUNK ROUTE REMAINS AS SUMMARISED IN PARA 3

ESSENTIAL FACTS OF BRIEF NO 6 FOR SECRETARY OF STATE'S VISIT.

AS REGARDS REGIONAL ROUTE, IN INFORMAL EXCHANGES

7.

8.

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CONFIDENTIAL