RESTRICTED
RESTRICTED
FM FCO
TO IMMEDIATE HONG KONG
RECEIVED IN!
181115
ISTRY
13 JUI 1993
ra
TELNO 656
DESK OFFICER
REGISTRY
OF 091625Z JULY 93
INDEX
on Taken
AND TO IMMEDIATE RANGOON
(7
046714
MDHOAN 5497
NIR.
RANGOON TELNO 170 AND FCO TELNO 117 TO RANGOON:
HONG KONG/BURMA ASA: MYANMA AIRWAYS INTERNATIONAL
1.
We have now discussed our Legal Advice on ownership and control of Myanma Airways International (MAI) with DoT as well the recommendations in your telno 1061.
2. The position is that because there is only an unexercised option for Myanmar nationals to own 50.38 per cent of the shares in MAI and because there are only three out of eight Myanmar nationals on the MAI board, there are grounds for objecting that the provisions of Article 3(1) of the UK/Burma ASA have not been satisfied. In light of this we shall be proceeding as suggested in para 2 (A) and (B) (I) of your telno 1061, informing the Burmese authorities that we are prepared, exceptionally to authorise you to issue a temporary operating permit valid until the end of the 1993 summer season (ie 31 October). We are happy for you also to make these points direct to the Burmese. You should also make clear to them that this is to enable you to finalise a new and separate Hong Kong/Burma ASA (under which questions of ownership and control might not arise). We also agree that Rangoon should act as suggested in para 3 of your telno 1061 and reinforce the need for an early conclusion to the negotiations.
3.
MIFT contains the text of a letter from Miss Whatmore in DoT to U Tin Ohn, Director General of Civil Aviation. Grateful if Rangoon could arrange delivery as soon as possible.
HURD
YYYY
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