TNAG-2850-FCO40-4103-Air-services-agreement-between-Hong-Kong-and-the-US-1993 — Page 13

1993 17:34

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threats

previous on

occasions, the US have already successfully secured from us at least an open position on two other issues; viz. additional flexibility on cargo fifths and double designation at Chicago. We cannot let them get away with these sort of tactics again.

Even if we were to accept that there might have been a genuine misunderstanding of our position on their part, we could not accede to the US request. The operation of services on the RTW route could, in our view, cause considerable damage to CPA and a reciprocal facility would be of no value to any Hong Kong airlines. A copy of CPA's response to your letter is enclosed for your information. I shall bring along papers to substantiate the extent of damage that would be caused to CPA (if the meeting is to go ahead as planned).

In view

of the above, I should be grateful if you could revert to MS Mary Street and let her know our firm position on this matter. You should point out that this has been our consistent position throughout the previous rounds of talks. Please also impress upon her that both sides should avoid any further pre-meeting negotiation and that the most productive way to proceed would be for both sides to engage in constructive negotiations. You may wish to remind Ms Street that the overall balance of advantage under the current deal falls favourably on the US side and that the additional rights available far exceed those under the status quo. You should add that we very much hope that she will not let this question of retaining a historic route (which for many years has not been used and which for technical reasons must now fall away) to prevent our reaching an overall agreement on දී separated HK/US ASA which is both politically important to Hong Kong and the US and will in practice bring great benefits to US carriers.

We are fully conscious of the risk of the US the talks as a result of the position we

pulling out of have taken.

I should be grateful if you could ask either Miss Judith Ritchie or Miss Elizabeth Whatmore to keep us closely informed of the US reaction while you are away in

Paris.