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An ASA text on the lines already largely agreed in previous rounds of talks. He confirmed that the US would be able to accept the language which had been worked out on citizenship.
Agreement on gateways on the basis already provisionally discussed at
at previous rounds (this would give Delta access to Portland and United access to Chicago). However, as Martin Glass is already aware, United will be looking for a double designation on Chicago to avoid the possibility of a route right proceeding in which they could lose out to American. (Gretch has previously signalled that some kind of capacity limitation would probably be acceptable as a quid pro quo for this).
Some additional fifth freedom cargo rights. It emerged in the conversation that the US concern was not so much with the destinations on offer as with being able to operate additional cargo frequencies without reducing the number of existing combination services.
Some commitment that ground handling rights at least equivalent to those currently available at Kai Tak would be available when the new airport opened. I understand that there had been some discussion in the past about an exchange of letters to deal
deal with this and Gretch confirmed that the US would be willing to take
take work forward on the basis of the most recent draft from the Hong Kong side.
We are asked to let the US side know if these requirements seem likely to cause insuperable problems. I think in that event they would rather postpone the talks, without publicising the fact they had been postponed or the reasons for that postponement. Our feeling is that the second and third of these requirements are the most fundamental from their point of view.
Perhaps, you could let us know whether you believe there is a good prospect of an agreement and whether the talks should go ahead.
I know that Martin Glass was seeking urgent guidance from Rod Balme as to whether the talks were on. I would therefore be grateful if you could ensure that this letter is copied to him. I am copying it John
John Hughes (AMD FCO) and Roy Griffins at our Embassy in Washington.
You swinds, Tam
A J GOLDMAN
Head of International Aviation Directorate
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