CONFIDENTIAL
PA
ST
GR 303
IMMEDIATE
DESKBY 252300Z CANBERRA, 260120Z HONGKONG, 26130ØZ WASHINGTON, 260333Z DELHI, 252100Z AUCKLAND, 260600
BAHRAIN, B666CAZ, KUWAIT.
HKK184/.....
RECSO
2 6 JUN 1978
CYPHER CAT 'A'
See (358) (367) (570)
FM FCO 241483Z
PA
ction Teken
No
CONFIDENTIAL
DESKBY 252300Z CANBERRA, 260100Z HONGKONG, 261300Z WASHINGTON, 260330Z DELHI, 252100Z AUCKLAND, 2606037 BAHRAIN, 250602Z KUWAIT. TO IMMEDIATE CANBERRA TELNO 325 OF 24 JUNE AND TO HONGKONG (FOR GOVERNOR AND BCARFE), DELHI, WASHINGTON, AUCKLAND (WELLINGTON PSE PASS), BAHRAIN, KUWAIT,
INFO PRIORITY OTTAWA, PARIS, BONN, ROME, ATHENS, VIENNA, BERNE, THE HAGUE, MADRID, BELGRADE, JOHANNESBURG.
A. MY TELNO 322
AUSTRALIA/UNITED KINGDOM AIR SERVICES TALKS
1. DISCUSSIONS FINISHED AFTER MIDNIGHT 23/24 JUNE.
2. TALKS WERE CONDUCTED IN A CORDIAL AND OPEN ATMOSPHERE THROUGH- OUT. THEY WERE REGARDED BY BOTH SIDES NOT AS A NEGOTIATION BUT AS A JOINT EFFORT TO REDUCE FARES AND THUS FACILITATE TRAVEL, ESPECIALLY BY THE LESS WELL-OFF SECTION OF THE COMMUNITY - CONSISTENT WITH COMMERCIALLY VIABLE AIRLINE OPERATIONS.
3. WE AGREED THAT THE AUSTRALIAN PROPOSALS OFFERED BEST PROSPECTS OF MEETING THIS OBJECTIVE. OTHER ALTERNATIVES (EG INTRODUCTION OF CHARTERS AND CHARTER-COMPETITIVE FARES ON SCHEDULED SERVICES) WERE LIKELY TO BE LESS EFFECIVE AND WERE SEEN AS HAVING SIMILAR, AND IN SOME RESPECTS WORSE, IMPLICATIONS FOR THE AIRLINES AND TOURIST INTERESTS OF THIRD COUNTRIES.
4. THE AUSTRALIANS SHOWED THEMSELVES FLEXIBLE IN OVERCOMING PROBLEMS AND ALTHOUGH SEVERAL POINTS OF SUBSTANCE REMAIN TO BE SETTLED, SOLUTIONS ARE IN SIGHT. MOST DIFFICULT PROBLEM
/REMAINS
CONFIDENTIAL
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