GRS 345
PRIORITY
CYPHER CAT A
CONFIDENTIAL
HKK 184/1
RECEIVED IN REG.STRY NO. 51
1 1 AUG 1978
RECETRY Action Taken
PA
FROM F C O 101810Z
DESK OFFICER
INDEX
PA
CONFIDENTIAL
CLE
468
TO PRIORITY JAKARTA TELEGRAM NO 176 OF 10 AUGUST, 1978, INFO HONG KONG (GOVERNOR AND BCARFE), AND CANBERRA,
UK/INDONESIA AIR SERVICES TALKS.
1. WILSON EXPLAINED THAT CONTINUING UNCERTAINTIES ABOUT CPA'S 5TH FREEDOM RIGHTS BEYOND JAKARTA TO PERTH INEVITABLY MEANT THAT IN ANY LONG TERM REVISION OF UK/INDONESIAN ARRANGEMENTS, WE WOULD NEED TO SEEK SOMEWHAT COMPLICATED PERMUTATIONS OF RIGHTS.
THIS
2. IN THIS CONTEXT HE INDICATED THAT, IF AUSTRALIAN DEVELOPMENTS LED TO WITHDRAWAL OF CPA SERVICES ON JKT-PER SECTOR, CPA WOULD ALSO WITHDRAW FROM KUL-JKT SECTOR. SINCE THE ONLY CPA 5TH FREEDOM SECTOR WOULD THEN BE SIN-JKT, UK WOULD NATURALLY (IN LIGHT OF CONFIRMED CONTINUING INDONESIAN REQUIREMENT FOR 5TH FREEDOM RIGHTS ON THE HKG-TYO SECTOR) NOT ONLY BE UNHAPPY WITH SEAT RESTRICTIONS ON THE SIN-JKT SECTOR, BUT WOULD EXPECT ACCESS (PERHAPS MATCHING LEVEL OF GARUDA CAPACITY BETWEEN BALI AND HONG KONG) TO DENPASAR.
3. INDONESIANS RECOGNISED THE FORCE OF OUR ARGUMENT BUT WERE CLEARLY NOT READY TO COPE WITH THE LONG-TERM SITUATION. THEY SAID THEY WOULD WELCOME LONG-TERM STABILITY. THEY GRATEFULLY RECOGNISED OUR RECENT READINESS TO ACCOMMODATE THEIR AIRCRAFT TYPE VARIATIONS NOT COVERED BY THE MARCH 1973 DEAL, AND SUGGESTED THAT ANY FUTURE NEW TEXT SHOULD BE REDRAFTED TO FORMALISE SUCH CHANGES (A SUGGESTION WHICH MAY GIVE US SCOPE TO ACHIEVE A TEXT WHICH WILL COVER LATER CPA B7475). HOWEVER, THEY CONCLUDED WITH A FIRM STATEMENT OF PREFERENCE FOR A SHORT TERM EXTENSION OF THE MARCH 1978 DEAL ON THE GROUNDS THAT IT WOULD BE IMPOSSIBLE TO PROVIDE FOR ALL THE COMBINATIONS OF SITUATIONS WHICH MIGHT ARISE.
CONFIDENTIAL
14. WE