TNAG-1962-FCO40-2794-Aviation-rights-in-Hong-Kong-for-Federal-Express-1989 — Page 21

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TELNO 3269

OF 03100OZ OCTOBER 89

INFO ROUTINE DTP, WASHINGTON

HKC184/20

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NC 15/1

14

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016334 MOLIAN 5388

YOUR TELNOS 1873 AND 1887 AND OUR TELNO 3075 (NOT TO WASHINGTON). FEDERAL EXPRESS INTEREST IN JAPAN: HONG KONG RIGHTS.

FRED SMITH AND 5 ASSOCIATES INCLUDING DOYLE CLOUD (VR REGULATORY AND GOVERNMENT AFFAIRS) CALLED ON SIEGEL, ADCOCK (CAD) AND WAKELING (ESB) THIS MORNING (3/10). THEY MET CPA YESTERDAY.

2. SMITH'S MAIN INTERESTS WERE IC THE CARGO FACILITIES AND OPERATING PHILOSOPHY AT THE NEW AIRPORT AND, SECONDLY, ADDITIONAL FIFTHS BETWEEN HONG KONG AND OTHER COUNTRIES. HE EVEN SUGGESTED THAT, FOR THE BENEFIT OF LOCAL SHIPPERS AND THE HK ECONOMY GENERALLY, ALL CARGO OPERATIONS SHOULD BE TOTALLY DE-REGULATED.

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3. THE MEETING WAS CORDIAL ALTHOUGH SMITH MAKE IT CLEAR THAT FEDEX WERE INTENT ON SECURING THE REINSTATEMENT OF THEIR LOST RIGHTS (SEE PARA. 1 OUR TUR). IT MAY BE, THEREFORE, THAT THEIR LOBBING IN WASHINGTON AND LONDON WILL INCREASE IN THE NEAR FUTURE.

4. SMITH MADE ONLY A BRIEF ALLUSION TO HIS MEETING WITH S/S TRANSPORT BUT HE DID SO IN A WAY THAT SUGGESTED FEDEX WERE FULLY COMMITTED TO HUBBING AT PRESTWICK.

WILSON

YYYY

ΜΑΙΝ

AIR SERVICES

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MR BAYNE

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