DSR 11C
ACCRUE
low fares for Australia (which generates 70% of the UK/
Australia traffic) and their belief that third countries
could be brought to recognise the benefits that could accrue
to them under the scheme. Murray (AUS FCO) pointed out
the difficulty of predicting how they would react in advance
of any approach to them; it was hard to be sure at this
stage that they would not be swayed by appeals eg to ASEAN
solidarity or North/South considerations. Lee Kuan Yew had
after all already sounded this note (para 2(B) of my tel No 159 to
Singapore). Moreover, opponents of the scheme criticise it
as being protectionist and a cartel between the two national
airlines. The Australians took the line that, without an indication
of our agreement in principle, they would not be prepared to
approach other Governments about the proposal. We undertook
to put it to Ministers as a matter of urgency, with a view to
resuming discussion with the Australians as quickly as possible.
15. In consulting Ministers, we will of course discuss the implications
of the Australian proposals for the UK's aviation policy generally.
We will also take account of the points made by Posts in reply to
FCO tel no 159 to Singapore about possible ASEAN reaction. The
Australians gave us a copy of an ASEAN position paper handed to
their Embassy in Djakarta on 22 June. Copy follows by bag to you
and ASEAN capitals.