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At the recent ASA/Concorde talks in London, we told the Malaysians Sympathised with the word for MAS to be able to plan a bead but we that we were prepared to examine sympathetically their ambitions

ammutualet to help MAS to plizia abead

wade

wo

in October.

Such a

in this direction for MAS Further talks are likely to take place

The Malaysian reaction could be sharp, even though

they will have no justification in air services terms.

reaction might postpone still further Malaysian agreement to

Concorde overflight of their territorial waters en route to

Singapore.

On the other hand, their resentment may be mitigated

to some extent when they realise the benefits they can derive from

the cuts affecting Singapore. The Australians may decide to

withdraw Qantas from the Malaysia-Australia service altogether

and leave it in the hands of MAS.

THAILAND

3 Thailand, like Malaysia, will lose the ability to carry through

traffic at the new low fare from Australia to Europe and will gain

from the exclusion of Qantas from the Bangkok-London sector.

We shall not need to cut their existing 3 services weekly between Bangkok and London (this is because they stop at Frankfurt and the Frankfurt/Bangkok sector accounts for a significant proportion

of their capacity). The Australians have not yet made up their

minds what they will do in respect of their arrangements with

the Thais. On balance we would not expect a seriously adverse

Thai reaction.

INDIA

4

A considerable volume of traffic is carried daily from London

to India (Bombay) on the UK-Australia service. BA are reasonably

confident that they would be able to make alternative arrangements

for this en route to Hong Kong or Singapore or by turn round

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