GRS 450

PRIORITY

CONFIDENTIAL

467

CYPHER CAT A

Sa (493

FM CANBERRA 080525Z

CONFIDENTIAL

TO PRIORITY FCO TELNO 393 OF 8 AUGUST

HIAR 18471 RACEVED HIREGISTRY NO. 51

10 AUG 1978

DESK OFFICER

INDEX

PA

REGIATRY Action Tven

Chr

INFO HONG KONG (GOVERNOR AND BCARFE), WELLINGTON, SINGAPORE,.. KUALA LUMPUR JAKARTA AND BANGKOK. INFO SAVING TO WASHINGTON, MANILA, DELHI, BAHRAIN, PARIS, BONN, ROME, THE HAGUE, VIENNA, BEL- GRADE, JOHANNESBURG, ATHENS, OTTAWA

4-67

MY TELEGRAMS NOS 390 AND 391: UK/AUSTRALIA AIR SERVICES TALKS

1. DESPITE A SOMEWHAT TENTATIVE START THE DISCUSSIONS, IN MY VIEW, PROVED AS SATISFACTORY AS CIRCUMSTANCES ALLOWED. THIS WAS DUE IN NO SMALL MEASURE TO ROGERS'S PATIENCE AND NEGOTIATING SKILL.

2. THE TENTATIVE START WAS DUE TO STRONG AUSTRALIAN PRESSURE ON US FOR A COMMITMENT AT LEAST IN PRINCIPLE TO THEIR PLAN, ON WHICH ROGERS FIRMLY DECLINED TO BE DRAWN. HOWEVER, THIS INITIAL CONFLICT OF OB- JECTIVES WAS LARGELY OBSCURED DURING THE WEEK BY THE JOINT EFFORTS OF THE TWO SIDES TO RESOLVE THE MANY PRACTICAL DIFFICULTIES INVOLVED. ON THOSE PRACTICAL MATTERS, WE SEEM TO HAVE COME OUT WELL, E. G. ON OUR SERVICES TO NEW ZEALAND. THE CONFIDENTIAL MEMORANDUM (PARAGRAPH 13 OF MY TELEGRAM NO 399) SUMMARISES THE DISCUSSIONS

FAIRLY AND DOES NOT PREJUDICE OUR POSITION.

3. IT IS, MOREOVER, A SIGNIFICANT GAIN THAT AUSTRALIANS HAVE AGREED TO TAKE THE LEAD IN APPROACHING THIRD COUNTRIES (PENULTIM-

ATE SUBSTANTIVE PARAGRAPH OF CONFIDENTIAL MEMORANDUM) AND THAT THIS HAS BEEN ACCEPTED BY MR NIXON HIMSELF (PARAGRAPH 5 OF MY TELNO 391).

THIS IS A SUBSTANTIAL ADVANCE ON AUSTRALIAN POSITION RECORDED IN

PENULTIMATE SENTENCE OF PARAGRAPH 14 OF YOUR TELEGRAM NO.330..

CONFIDENTIAL

14. AT

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