GR 1400A IMMEDIATE
CYPHER
CYPHER CAT A
FM F C 0 131743Z
CONFIDENTIAL
CONFIDENTIAL
see/1333 1343) 333
$370
RESEVAL
RAAKK 184/1.
Y NO. 51
14 JUN 1978
OFCK OFFICER
INDEX
RA
REGITRY Action Taken
No
TO IMMEDIATE CANBERRA TELNO 302 OF 13 JUNE 1978,
AND TO ROUTINE HONG KONG (GOV AND BCARFE), SINGAPORE, KUALA LUMPUR, BANGKOK, JAKARTA, MANILA, TOKYO, DELHI, WASHINGTON, AUCKLAND
(WELLINGTON PLEASE PASS), BAHRAIN, KUWAIT,
INFO OTTAWA, PARIS, BONN, ROME, ATHENS, VIENNA, BERNE, THE HAGUE, MADRID, BELGRADE, JOHANNESBURG.
YOUR TEL NOS ALLOT 12 TO 14 (NOT TO COPY ADDRESSEES): UK/AUSTRALIA
AIR SERVICES,
1. THANK YOU FOR YOUR PROMPT REPORTING BEFORE THE AUSTRALIAN TEAM'S VISIT. FOLLOWING IS FOR YOUR OWN INFORMATION.
2. TALKS COMMENCED HERE ON 12 JUNE AND SO FAR HAVE BEEN CONFINED TO AN EXPLANATION OF WHAT THE AUSTRALIAN GOVERNMENT HAS IN MIND AND AN ELUCIDATION OF UNDERLYING REASONS AND STATISTICS. ROWLAND (MINISTRY FOR TRANSPORT) IS LEADING FOR AUSTRALIA AND ROGERS (DEPARTMENT OF TRADE) FOR UK. DISCUSSIONS HAVE BEEN AS RELAXED AND INFORMAL AS THEY WERE IN CANBERRA IN MARCH (YOUR TELNO 185 OF 3 MARCH, NOT TO ALL). THE AUSTRALIANS HAVE DONE A LOT MORE HARD WORK SINCE AND HAVE THOUGHT THEIR PROPOSALS THROUGH CAREFULLY. THE QUALITY OF THEIR ECONOMIC ANALYSIS (FOR WHICH GANNON HAS BEEN MAINLY RESPONSIBLE) IS IMPRESSIVE. THERE ARE, HOWEVER, SOME ASPECTS OF THEIR CALCULATIONS ABOUT WHICH WE HAVE SOME DOUBTS AND WHICH REQUIRE
FURTHER CHECKING.
3. ROWLAND SAID THAT MR NIXON'S REPORT TO THE AUSTRALIAN CABINET LAST WEEK HAD BEEN LEAKED WHILE THE TEAM WAS ON ITS WAY TO LONDON AND SOME PARTS PUBLISHED IN THE AUSTRALIAN PRESS. THIS HAD LED TO URGENT REPRESENTATIONS BY SINGAPORE, MALAYSIA AND OTHERS REGARDING SERIOUS DAMAGE THAT IMPLEMENTATION OF THE AUSTRALIAN PROPOSALS WOULD DO TO THEIR AIRLINES AND TOURIST INDUSTRIES. THEY HAD BEEN GIVEN NON-COMMITTAL REPLIES. THE AUSTRALIAN PRIME MINISTER WAS EXPECTED TO COME UNDER ATTACK WHEN HE VISITED SOUTH EAST ASIA LATER
THIS MONTH.
CONFIDENTIAL
14. ESPECIALLY