TNAG-2851-FCO40-4104-Air-services-agreement-between-Hong-Kong-and-Japan-1993 — Page 6

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HONG KONG/JAPAN AIR SERVICES

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My Gofrett

Caprett Mis Wyver

ISTRY

FIELDER (DOT) SPOKE TO DOI (DEPUTY DIRECTOR-GENERAL CIVIL AVIATION BUREAU, MINISTRY OF TRANSPORT) ON 8 DECEMBER ABOUT THE NEED FOR PROGRESS ON THE HONG KONG JAPAN ASA AND ITS ASSOCIATED CONFIDENTIAL MEMORANDUM OF UNDERSTANDING (CMU). HE STRESSED THE URGENCY OF AGREEING TO THE DETAILS TO BE INCLUDED IN THE CMU AND THE ADVANTAGES OF THIS WORK BEING CARRIED OUT BY A WORKING GROUP OF MOT AND HONG KONG EXPERTS.

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DOI EXPRESSED HIS SUPPORT FOR FINALISING ALL THE NECESSARY WORK ON A SEPARATE ASA, BUT STRESSED THAT THE MFA WERE IN THE LEAD AND THAT THE MOT COULD NOT GET TOO FAR OUT ON THEIR OWN. HE WOULD DISCUSS WITH THE MFA HOW MORE PROGRESS MIGHT BE MADE. HE WAS NOT AGAINST THE WORK ON THE CMU BEING DONE IN AN EXPERT WORKING GROUP AND HE SAW NO REASON FOR A LONDON-BASED OFFICIAL TRAVELLING TO TOKYO OR HONG KONG SIMPLY TO SUPERVISE THE PROCESS.

3. DOI SAID, HOWEVER, THAT HE WAS CONCERNED ABOUT AN IMPORTANT SUBSTANTIVE POINT, WHICH HE ASKED FIELDER TO CONVEY TO THE HONG KONG SIDE. WHEREAS A CAPACITY REGIME NEGOTIATED BY THE AIRLINES AND APPROVED BY THE AUTHORITIES MIGHT HAVE BEEN ALRIGHT WHEN THERE WAS ONLY ONE AIRLINE ON EACH SIDE, NOW THAT THERE WERE SEVERAL AIRLINES ON EACH SIDE. A MORE CONVENTIONAL CAPACITY ARRANGEMENT WORKED OUT BY THE AUTHORITIES THEMSELVES WOULD BE MORE SATISFACTORY. IT WOULD THEN BE FOR EACH AUTHORITY TO SETTLE THEIR DIFFERENCES OVER CAPACITY BETWEEN THEIR OWN AIRLINES WITHIN THAT OVERALL CAPACITY ENTITLEMENT. HE WAS MOST CONCERNED ABOUT DISPUTES OF THIS SORT COMING INTO THE PUBLIC DOMAIN, PARTICULARLY AFTER 1997. DOI, WHO SPENT THREE YEARS IN THE JAPANESE EMBASSY IN PEKING, ALSO IMPLIED THAT SUCH AN ARRANGEMENT AGREED BETWEEN THE JAPANESE AND HONG KONG GOVERNMENT WOULD MINIMISE THE POSSIBILITY FOR PRC INTERFERENCE.

FIELDER PROMISED TO PASS THESE THOUGHTS ON AND TO RESPOND THROUGH THE EMBASSY.

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