Registry

Jo.

CURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted,

Unclassified.

IVACY MARKING

.................................................................In Confidence

DRAFT

To:-

The Rt Hon Edmund Dell MP

Department of Trade

1 Victoria Street SW1

Type 1 +

From

MR JUDD

Telephone No. Ext.

Department

DSRIT

UK/AUSTRALIA AIR SERVICES

Thank you for your letter of 26 July. I note that you

do not intend to enter into any final agreement with the

Australians until the ASEAN countries have been consulted and

that you will ensure that the Australians are aware that the

discussions are being held on this basis. But I hope your

team will be instructed to stick very firmly to the terms

of the written Statement of the UK position which we agreed

and which has now been telegraphed to Canberra for trans-

mission to the Australians. As we have both recognised, we

need to preserve the ability to retreat if the reaction of

the third countries is tough and if they gang up to block

the scheme. It is also most important not to give third

countries the impression in the meantime that we are ganging

up with the Australians against them. I therefore hope that

the team will make it absolutely clear to the Australians

that the discussions are held on the basis of the Statement

rather than on the basis you describe.

Od 108087 400M S&K 1/77

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