TNAG-2838-FCO40-4091-Air-services-agreement-between-Hong-Kong-and-the-Philippines-1993 — Page 20

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FM HONG KONG

TO ROUTINE FCO

TELNO 804

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нкс 181/9 RECEIVED IN NOORI

19 MAY 1993

DESK O TROUR

OF 200308Z MAY 93

INDEX

PA

Acton Tab

INFO ROUTINE DOT, MANILA

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072741

MDLIAN 4277

DOT FOR IAD

•NOT ON

OFFICE

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OUR TELNO 509: HONG KONG/PHILIPPINES AIR SERVICES

1. DESPITE CONTINUING OPPOSITION FROM PAL, NEGOTIATIONS CONCLUDED ON 18 MAY WITH AGREEMENT REACHED IN RESPECT OF THE HONG KONG/MANILA ROUTE ON AN IMMEDIATE CAPACITY INCREASE OF 600 SEATS FOR EACH SIDE, ON A FURTHER INCREASE OF 400 SEATS EACH W.E.F. AUGUST 93, AND ON A FORMULA FOR INCREASING CAPACITY BY 500 SEATS EACH FROM NOVEMBER 93 AND AT SIX MONTHLY INTERVALS THEREAFTER. EACH SIDE MAY ALSO CONVERT UP TO 400 SEATS OF CAPACITY FOR ALL- CARGO SERVICES.

2. THE OPPORTUNITY WAS TAKEN TO PROVIDE ON AN INTERGOVERNMENTAL BASIS FOR THE EXISTING SERVICES BETWEEN HONG KONG AND CEBU, CURRENTLY OPERATED UNDER CPA/PAL COMMERCIAL AGREEMENT. THE PHILIPPINES SIDE, HOWEVER, REMAINED OPPOSED TO ANY CAPACITY INCREASE AT THIS STAGE.

3. FOLLOWING AN EXCHANGE IN GENERAL TERMS ON ASA SEPARATION, THE PHILIPPINES SIDE EXPRESSED THEMSELVES PREPARED TO COME TO HONG KONG FOR DETAILED DISCUSSIONS IN THE NEAR FUTURE. AT THEIR REQUEST, WE WILL SHORTLY BE ASKING MANILA TO DELIVER A NOTE INVITING THEM FOR THAT PURPOSE IN JUNE OR JULY.

4. A COPY OF THE CMU RECORDING THE ABOVE IS BEING SENT BY BAG TO FIELDER (DOT).

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