3. UK/Australia
air services agreement
To regulate air services between Australia and
HK.
2
asked for our comments on a revised IATA package recently filed by BA, which is now being studied. Meanwhile, details of July IATA meeting in Montreal are awaited from FCO.
(b) Passenger fares
The difference between the levels of HK-originating and US- originating fares sold in the local currency, through use of IATA exchange rates, has been taken up by FCO with US State Department.
At the UK/Australia air services talks held in June, the Australians made proposals for a substantial reduction in UK/Australia air fares by providing direct end-to-end services at high seat factors, and cutting out all immediate stops except for refuelling purposes. HKG is attempting to assess the implications of the Australian proposals for HK, and for Cathay Pacific Airways, but the supporting information received so far from the Australians is very sketchy.
To let FCO have our views on the pro- posals in the light of the information received, and to k.i.v. outcome of further
discussions to be held in Canberra commencing on
31 July at which HKG and CPA will be represented.
CONFIDENTIAL
機密