CPR MLG LEGALLY BUT FOOLISHLY PASSES CLOSE TO A B727 WHEN CLRED TO MAINTAIN VISUAL SEPARATION AND TO CLB TO DESIRED ALT. HE BLAMES THE B727 FOR NOT 'LOOKING OUTSIDE THEIR ACFT.' THEORETICALLY; MISSING BY ONE FT IS LEGAL. THE B727 CREW COMPLAINT THAT INSUFFICIENT SEPARATION WAS PROVIDED BY THE RPTR MAKES SENSE.

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I AM WRITING; NOT BECAUSE I FEEL ANYTHING UNSAFE HAPPENED; BUT BECAUSE I AM DISTURBED BY CREWS NOT LOOKING OUTSIDE THEIR ACFT AND RELYING ON ATC/TCASII FOR TFC SEPARATION ON CLR VFR DAYS. WE WERE AT 14000 FT AWAITING CLB CLRNC. CTR ISSUED US TFC AT 15000 FT; 2 O'CLOCK AND 10 MI; A B727. MY COPLT SAW THE TFC AND POINTED THE B727 OUT TO ME. (THIS WAS AT 10 MI.) THE B727 NEVER ACKNOWLEDGED TFC IN SIGHT (US). WHEN THE B727 WAS AT 12 O'CLOCK AND AT 1-2 MI; ATC ISSUED CLRNC TO ME TO MAINTAIN VISUAL SEPARATION AND TO CLB TO 17000 FT. I REMAINED AT 14000 FT UNTIL THE B727 WAS THROUGH MY 11 O'CLOCK POS AND BEGAN MY CLB TO 17000 FT. AS WE WERE APCHING 15000 FT IN THE CLB WITH THE B727 THROUGH 9:30 - 1O O'CLOCK AND LESS THAN 1 MI; THE B727 PLT TOLD ATC THAT THEY HAD AN RA ALERT ON THEIR TCASII AND FELT WE HAD NOT GIVEN THEM ENOUGH DISTANCE. THIS WAS FALSE. HAD THE B727 CREW SEEN US (OUR POS) PRIOR TO CLB AND SEEN OUR POS ON THEIR TCASII SCREEN; THEY WOULD HAVE KNOWN WE WERE ALWAYS WELL BELOW OR BEHIND AND NO DANGER EXISTED.