and Australia [generates 70%) The Australia UK traffic.
for MAS to plan ahead.
Nevertheless, the Malaysian
reaction could be sharp and is likely to make still
more difficult agreement on Concorde supersonic
overflight of their territorial waters.
(b) ASEAN solidarity and North/South considerations
*
The Australians played down the risk that, irrespective
of their separate air service/tourist interest, the
countries concerned would gang up to block the scheme
by a total refusal to cooperate eg by denying overflying
and landing rights (the ability to overfly Indonesia
is particularly important). They stressed the overriding domestic political importance of low fares
(they estimate that around 10 million Australians have
relatives in the UK) and their belief that third
countries could be brought to recognise the benefits
that could accrue to them under the scheme. They also
argued that the interests in this context of the
individual members of ASEAN are so divergent that
mauitam' ASEAN will not be able to a common position.
The Australians may well turn out to be right but there
is certainly some risk, however, that those most
affected (Singapore) or those that think they stand
to lose (eg Malaysia) will win support against the
scheme by appeals to ASEAN solidarity or North/South
considerations. Mr Lee Kuan Yew has already taken the
line in public: "If the developed world chooses to
bypass the undeveloped parts of the world I can only
cee it accentuatin- the divide (between them)"