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DSR 11C

DRAFT UK REPLY TO THE AUSTRALIAN GOVERNMENT

1. HMG shares the Australian Government's

desire for cheaper air fares between Australia

They

and the UK. Th would help to cement still further

the close relationship between the two countries.

2. We find the Australian proposal of end to

end scheduled services, low fares and high

aircraft utilisation on the trunk route between

the UK and Australia interesting and attractive.

If such a scheme could be introduced in an

orderly and acceptable manner and subject to

solutions being found to certain practical

problems identified in the talks, we would cooperate

3.

in the implementation of the Australian proposals.

The Australian proposal in respect of the

Australia/UK route have important implications for

a number of third countries, notably Singapore,

Malaysia, Thailand and India. We understand that

the Australians intend to open negotiations with

these countries. We should welcome the opportunity

to consider these proposals further with the

Australian authorities in the light of those

discussions.

4. We are not yet in a position to respond to

the Australian proposal in respect of the routes

between Hong Kong and Australia.

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