7
the Australian attempt to get their agreement to a Pacific arrangement and the introduction of this arrangement between UK and Australia
as a threat to the cause of a liberal world air services regime.
We do not consider If so we may incur a share of UK displeasure.
however that this would be so serious as to have implications for
And Bermuda 2 would bilateral UK air service relations with the US.
be unaffected.7
WIDER IMPLICATIONS
17 We have considered the possibility that this kind of arrangement may spread elsewhere in the world. Having accepted it on one route, we may be faced with demands from other countries for similar
arrangements.
We cannot be forced to accept them and in any case given BA's interest in the Australian proposal, may actually welcome them. There is no reason that we can see that these wider
considerations need affect the decision on the Australian proposal.
CONCORDE
18 We explained to the Australians that a regime such as they were proposing could not apply to Concorde if there were to be any
It would be chance of a viable UK-Australia operation by Concorde. quite impossible for such an operation to survive on the end to end traffic and we would therefore want Concorde to be excluded from the new arrangements. We suggested that Concorde operations might be covered by a seaprate understanding between us outside the
Air Services Agreement. The Australians admitted they had not thought
about Concorde and would give it further consideration.
LAKER
19
The implications of the Australian proposals for Laker Airways are that it would not be possible for them to operate the charter
that he made fanmal que tiention to the CAA.