CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 582
OF 141045Z APRIL 93
CONFIDENTIAL
HKC 181/20 RECEIVED IN RECISTRY
TO APR 1993
DESK OF FOLK
INDEX
PA
REGIST
Dan Tuk
i
INFO PRIORITY DTP, BANGKOK, PEKING
DTP (FOR IAD)
na.
0
155704 MDLIAN 6791
HONG KONG/LAOS AIR SERVICES.
1.
A LAOTIAN DELEGATION CALLED ON DCA IN NOVEMBER 1992 WITH A REQUEST THAT LAOS AVIATION BE PERMITTED TO OPERATE SCHEDULED SERVICES TO HONG KONG. THEY MADE IT CLEAR THAT THEY WOULD BE PREPARED TO WITHDRAW OVERFLIGHT RIGHTS FOR HONG KONG AIRLINES IF THEIR REQUEST WERE TO BE TURNED DOWN. LAOS IS NOT A SIGNATORY TO IASTA.
2. WE HAVE CONSULTED OUR AIRLINES ON BOTH THE LAOTIANS' REQUEST AND THEIR THREAT. WHILST NEITHER CPA NOR AHK HAVE PLANS TO OPERATE VIENTIANE, THE WITHDRAWAL OF THEIR RIGHTS TO OVERFLY LAOS WOULD HAVE AN ADVERSE IMPACT ON THEIR OPERATION TO BANGKOK AND BEYOND TO INDIA, SOUTH AFRICA, THE MIDDLE EAST AND EUROPE. APART FROM THE ADDITIONAL FUEL CONSUMED IN FLYING ROUND LAOS, THE EXTRA TIME INVOLVED WOULD INCREASE CREW FLIGHT HOURS BEYOND PERMITTED LIMITS. FOR THEIR PART, DRAGONAIR HAVE A LICENCE FOR SERVICES TO LAOS, AND ALTHOUGH THEY ARE NOT YET IN A POSITION TO BEGIN OPERATING, THEY HAVE NO OBJECTION TO LAOS AVIATION DOING SO AT
THIS STAGE.
3. AS WITH CAMBODIA COUR TELNO 19), THE EXISTING ARRANGEMENTS WITH LAOS TAKE THE FORM OF AN EXCHANGE OF LETTERS. THEY WERE CONCLUDED BETWEEN THE UK AND LAOS IN 1973, AND PROVIDE FOR OPERATION ONLY BY CPA AND ROYAL AIR LAO.
4. WE CONSIDER NEW ARRANGEMENTS FOR HONG KONG/LAOS SCHEDULED SERVICES TO BE OPERATED BY LAOS AVIATION AND, IN TIME, BY DRAGONAIR THEREFORE BOTH DESIRABLE AND NECESSARY. IN THIS RESPECT, THE FORM OF ARRANGEMENTS THAT WE HAVE CONCLUDED WITH VIETNAM AND THAT WE PROPOSE TO CONCLUDE WITH CAMBODIA WOULD APPEAR SUITABLE IN THE SHORT TERM, PARTICULARLY AS THEY PROVIDE BOTH FOR RECIPROCITY IN THE OPERATION OF SERVICES AND FOR OVERFLIGHT OF THE TERRITORY OF THE OTHER PARTY BY ALL HONG KONG
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CONFIDENTIAL
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