TNAG-2850-FCO40-4103-Air-services-agreement-between-Hong-Kong-and-the-US-1993 — Page 16

THE DEPARTMENT OF TRANSPORT:

Mr Whomersley

14

2 MARSHAM STREET LONDON SWIPER

ROOM S6/18 TELEX 22221 DIRECT LINE 071-276 5410

SWITCHBOARD 071-276 3000

Wilson Fung Esq

Air Services Negotiations Unit

Economic Services Branch

Government Secretariat

Lower Albert Road

HONG KONG

(BY FAX)

GTN 276

per

IAD FAX:

071-276-5390

My Ref:

181/2

}

STRY

SEP 1993

FFICER

PA

STRY on Taken

3 September 1993

Your Ref:

cc: Mr Hall (AMD)

Mr Bunter (HKD)

CAW

3/9/93.

Dear Wilson,

HONG KONG/US ASA TALKS

Thank you for your letter of 27 August to Judith Ritchie. I agree that it is prudent to have texts ready to bring the new arrangements into provisional effect and to deal with consequential amendments to the UK/US ASA. We are, as you suggested, seeking advice from the FCO Legal Adviser.

However, a telephone call I had from Mary Street in the US DOT yesterday makes it clear that the round the world route is very much a live issue which will have to be confronted. Indeed, this could be a point on which the whole talks founder.

She told me that a conversation between a United Airlines employee and somebody engaged by Cathay in the US had suggested that the round the world route from Hong Kong was not on offer. She claimed that the US side had been assuming that this would form part of the eventual deal. Whether this stems from a genuine misunderstanding of what was said at the last round of talks (at which I was not present), whether it is wishful thinking or whether it is a deliberate ploy to cover the fact that DOT failed to spell this out as one of their key requirements when they spoke to me previously, I do not know. Whatever the explanation, it is fairly clear that United attach importance to the route and that DOT will be in considerable difficulty if they cannot deliver.

Mrs Street asked me to find out what the actual Hong Kong position was and reiterated that the US side would rather not have the talks at all if it was clear that they could not succeed.