STATEMENT APPROVED BY UK MINISTERS

The UK Government share the Australian

Government's desire for cheaper air fares between Australia and the UK. These would help to cement still further the close relationship between the two countries.

We find the Australian proposals for end to end scheduled services, low fares and high aircraft utilisation on the trunk route between the UK and Australia novel and attractive. If such a scheme could be introduced in an orderly and acceptable manner and subject to solutions being found to certain practical problems identified in the talks, we would co-operate in the implementation of the Australian proposals.

The Australian proposals in respect of the Australia/UK route have important implications for a number of other countries, notably India, Malaysia, Singapore and Thailand. We understand that the Australians intend to open negotiations with these countries. We should welcome the opportunity to consider these proposals further with the Australian authorities in the light of those discussions.

We also wish to discuss further the possibility of incorporating a modest charter operation into the proposed scheme.

We are not yet in a position to respond to the Australian proposals in respect of the routes between Hong Kong and Australia.

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