TNAG-2016-FCO40-2871-Relations-between-Hong-Kong-and-Japan-1990 — Page 263

FROM DIP

NO.32.

PAGE

1990-01-03 17:16 FCO MPED

012793386

P.03

Background.

1. Air services between the United Kingdom and Japan are operated under the 1952 Air Services Agreement (ASA). The route is currently operated by four carriers British Airways, Virgin Atlantic, Japan Airlines and All Nippon Airways. Hong Kong carriers are Cathay Pacific.

Heang Kang Deroger Airliner and Ai thong Kang.

policy

2. It is the Department of Transport's (DTp) policy in negotiations with their aviation partners to obtain more liberal arrangements covering capacity, routeings and tariffs thus giving the airlines greater freedom to respond to market forces. For example, regulated faces on the UK/Japan route have led to a situation whereby the

Tokyo/London fare far exceeds the London/Tokyo figure. The UK has been pressing the Japanese Ministry of Transport for two years to agree such liberal arrangements but with no success.

3. The UK made a major approach last October at a round of inter-governmental talks but this was strongly resisted by the

Japanese side. They were also reluctant to discuss formally a more

limited package of arrangements to cover modest increases in capacity and improvements in routeing for the airlines of both

countries, Nor was there any agreement to the UK's request that

Ilong Rong airlines should be given greater access to Japanese cities in addition to Tokyo and Osaka.

Í

EITHER

Another 'round of talks was agreed but dates have yet to be set, despite heavy pressure on the Japanese from the Embassy.

OR

Another round of talks was agreed and these have now (after much pressure on the Japanese) been fixed for

i

4. The Prime Minister has taken a keen interest in UK/Japan air services and has already raised the matter with Mr Kaifu. She will be briefed for this further meeting to express her disappointment at the failure of the October talks and to hope that agreement can

be reached.

Soon