THIS WOULD INCLUDE END TO END PASSENGERS WHO REQUIRE A STOP-OVER, PUT THEY WOULD NOT BENEFIT FROM THE NEW LOW THROUGH FARES AND WOULD
VE TO CONTINUE THEIR JOURNEY BY OTHER SERVICES, THEY CLAIM HOWEVER, THAT THEIR OWN RESEARCHES SHOW THAT VERY FEW AUSTRALIANS ARE REALLY PREPARED TO PAY THE TRUE COST OF THE STOP-OVER FACILITIES AT POINTS SUCH AS SINGAPORE, WHICH THEY AT PRESENT ENJOY.
9. THEY RECOGNISE THAT THESE PLANS WOULD REQUIRE A MAJOR RESTRUCT- URING OF QANTAS' RESOURCES AND BIG CUTS IN QANTAS' STAFF ALL ALONG THE TRUNK ROUTE TO EUROPE. THE PLANS WOULD ALSO ENTAIL A SERIOUS REDUCTION IN THE CARRIAGE OF TRAFFIC BY SIXTH FREEDOM OPERATORS SUCH AS SIA, AIR INDIA AND KLM, AND WOULD SUBSTANTIALLY REDUCE TOURISM EARNINGS FROM STOP-OVER TRAFFIC IN SINGAPORE AND ELSEWHERE. IN THE LAST RESORT, HOWEVER, AUSTRALIAN MINISTERS BELIEVE THAT THEIR INTERNAL POLITICAL PRESSURES FOR LOWER FARES OUTWEIGH THESE EXTERNAL POLITICAL CONSIDERATIONS.
10. IN RESPONSE TO OUR QUESTIONS, THE AUSTRALIANS HAVE SAID THEY DO NOT EXPECT THEY WILL BE ABLE TO PERSUADE THE AMERICANS TO ACCEPT THIS LINE OF THINKING. HOWEVER, THEY BELIEVE THAT THEY COULD TOLERATE A SITUATION IN WHICH THE UNITED STATES WAS THE ODD MAN OUT. THEY BELIEVE THAT IF WE CONCUR IN THEIR PROPOSALS AND ARE PREPARED TO TAKE THE NECESSARY STEPS ON OUR SIDE (NOTABLY BY REDUCING THE CAPACITY OF THE SIXTH FREEDOM CARRIERS BETWEEN THEIR HOME BASES AND LONDON TO WHAT IS REALLY NEEDED TO CARRY THE 3RD/4TH FREEDOM TRAFFIC BETWEEN THOSE POINTS), THEIR, OTHER BILATERAL PARTNERS IE WITH THE EXCEPTION OF THE AMERICANS CAN BE PERSUADED OR FORCED TO DO THE SAME. THEY BELIEVE THERE IS SUFFICIENT JEALOUSY OF SINAGPORE TO PREVENT EVEN THE ASEAN COUNTRIES FROM QUOTE GANGING UP AGAINST THEM UNQUOTE: WHILE THEY CAN AFFORD TO ADOPT A TAKE IT OR LEAVE IT ATTITUDE TOWARDS THOSE COUNTRIES FROM WHICH THEY WOULD IN FUTURE NOT BE REQUIRING ANY TRAFFIC RIGHTS.
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11. THEY HOPE TO MOLLIFY THE SINGAPOREANS BY POINTING OUT THAT AS PART OF THIS PACKAGE THE FARE BETWEEN AUSTRALIA AND SINGAPORE (WHICH HAS BEEN KEPT UNDULY HIGH FOR REASONS CONNECTED WITH PRO-RATING ON THE TRUNK ROUTE TO EUROPE) CAN BE REDUCED AND THAT THIS WILL ENCOURAGE AN INCREASE IN THE NUMBER OF SHORT, HOLIDAYS TAKEN BY AUSTRALIANS IN SINGAPORE AND ELSEWHERE IN SE ASIA.
12. THE AUSTRALIANS INTEND TO MAINTAIN A POLICY OF SINGLE DESIGNAT- ION AND WOULD EXPECT US (AND THEIR OTHER BILATERAL PARTNERS, EXCEPT
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