TNAG-1177-FCO40-1479-Air-services-between-Hong-Kong-and-South-East-Asia-1982 — Page 116

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 understand that we have to pay regard to our relations with our own airlines and with the Hong Kong Government.

5 You should not repeat not yourself propose air services consultations. It is for the Malaysians to decide whether they

now wish to make definite proposals. They should be given no reason to suppose that they can secure any increases in capacity without air service consultations and detailed discussion of the factual justification of their request, nor that we shall be able to agree to any increases beyond the levels which such

consultations may reasonably show to be justified by the terms of the 1979 CMU.

6 For your own information, 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.

기

2