TNAG-1177-FCO40-1479-Air-services-between-Hong-Kong-and-South-East-Asia-1982 — Page 57

CONFIDENTIAL

PP SINGAPORE

GRS 581

CONFIDENTIAL

FM DOT 301557Z SEP 82

TO PRIORITY SINGAPORE

TELEGRAM NUMBER ALLOT 3 OF 30 SEPTEMBER

INFO GOVERNOR HONG KONG

пи

My Haar

Kr. Mary's

26405 - 1

ботат

SGAD

MAED

WM

UM 103

HK GD

YOUR ALLOT 4.

AIR SERVICES: PRESS INTEREST

ONLY ENQUIRY HERE HAS BEEN FROM ASSOCIATED PRESS WHO WERE

ANSWERED IN SAME VEIN AS YOUR PARAGRAPH 2. WE SHOULD PREFER TO KEEP

TO THIS LINE AND AGREE YOU SHOULD NOT PROVOKE AN UNEQUAL BATTLE

WITH THE PRESS IN SINGAPORE, BUT THE FOLLOWING POINTS MAY HELP IF

SINGAPORE AUTHORITIES DECIDE TO STIR IT UP.

2. WE UNDERSTAND SIA DO NOT WANT TO COMMENCE DAILY TRANSPACIFIC

SERVICES THROUGH HONG KONG BEFORE 1 APRIL 1983, SO THERE IS STILL

PLENTY OF TIME TO REACH AGREEMENT IF THERE IS WILLINGNESS ON BOTH

SIDES TO DO SO. THIS IS LIKELY TO BE MORE DIFFICULT RATHER THAN

LESS IF ENTRENCHED POSITIONS ARE ADOPTED IN PUBLIC.

3. YOU SHOULD NOT ATTEMPT TO MEET THE ARGUMENT ABOUT PROTECTIONISM

HEAD ON. RATHER YOU SHOULD EMPHASISE THAT THE MAIN PURPOSE OF THE

BILATERAL AIR SERVICES AGREEMENT IS TO PROVIDE FOR THE CARRIAGE OF

TRAFFIC BETWEN SINGAPORE AND THE UK INCLUDING HONG KONG (SEE

ARTICLE 7). HOWEVER 90 PER CENT OF PASSENGERS GETTING ON OR OFF

SIA'S SINGAPORE-PANGKOK-HONG KONG SERVICE AT HONG KONG ARE

TRAVELLING BETWEEN BANGKOK AND HONG KONG. SIMILARLY ON SIA'S

FLIGHTS BEYOND HONG KONG TO TAIPEH AND TOKYO ONLY ONE THIRD OF THE

PASSENGERS ARE TRAVELLING TO OR FROM SINGAPORE. THE REST ARE

TRAVELLING BETWEEN HONG KONG AND TAIEPH/TOKYO. WE HAVE TOLERATED

THIS SITUATION TO THE SUBSTANTIAL BENEFIT OF SIA FOR MANY YEARS

AND WE ARE PREPARED TO CONTINUE TO TOLERATE A SIMILAR POSITION ON

SIA'S TRANSPACIFIC SERVICES THROUGH HONG KONG, BUT WE CANNOT

REASONABLY BE EXPECTED TO ALLOW SIA TO ACT INDEFINITELY AS A

PREDOMINANTLY HONG KONG BASED CARRIER ON SECTORS WHICH ARE OF

VITAL IMPORTANCE TO CATHAY PACIFIC. THERE IS FULL COMPETITION

1

CONFIDENTIAL