TNAG-1177-FCO40-1479-Air-services-between-Hong-Kong-and-South-East-Asia-1982 — Page 113

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CODE 18.77

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Mr Burns

SEAD

Reference

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Dov.

UK/MALAYSIA AIR SERVICES

1. I attach a letter from Mr Roberts in the D/Trade enclosing a draft telegram in reply to Kuala Lumpur telegram ALOT No. 1.

2.

It seems to me that this draft is not likely to encourage the High Commission in its efforts to get the Malaysians to ask for consultations. Moreover, MAED have been told by Mr Roberta' juniors that there may now be a very small amount of room for concession on the basis of the latest figures available to the Airlines. Whether this will be sufficient to satisfy the Malaysians is questionable. But the fact that the Malaysians would not go back empty handed might forestall any complaint from the High Commission that they were being asked to persuade the Malaysians to go on a wild goose chase.

3.

I have, therefore, agreed with a somewhat reluctant Mr Roberts the addition of the following new paragraph between the existing paragraphs 5 and 6 in the draft:-

"Strictly for your own information, it is possible, judging by the latest figures we have seen, that we could make some minor, but perhaps face-saving, concessions to the Malaysians on the trunk route if they were prepared to seek consultations on the basis of the latest statistics. But the initiative for talks must come from them; and any prior indication that we had some leeway would only make them ask for more than we could possibly give. The position on the regional routes is more difficult, though we are checking the figures again."

19 February 1982

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Bay

J W D Gray

Maritime, Aviation and Environment Department