gistry

URITY CLASSIFICATION

CONFIDENTIAL

DRAFT

LETTER

To:-

Top Secret,

Secret.

Confidential.

Restricted.

The Rt Hon

Edmund Dell, MP Department of Trade

1 Victoria St, SW 1

Unclassified.

VACY MARKING

In Confidence

Type 1 +

From

Mr Judd

Telephone No. Ext.

Department

DSR 11

Mr. Morland's submission of 19/7. Redragt/ by Mixbrom

below

UK/AUSTRALIA AIR SERVICES

1. I have seen the joint DOT/FCO paper on an Australian proposal for radical revision of the air services arrange-

ments between Australia and all countries with services to

Australia, and its implications for the UK.

2. I agree with the recommendation that the Australians should be given a written answer on the lines of the draft submitted by officials and should be told orally that we should have no objection to the Australians showing it to

the third countries which they approached, if asked what the

UK reaction had been.

3.

My only difficulty arises over a point which lies out-

side the joint paper. This is the timing of the next round

on

of talks with the Australians/which I understand that our

officials have not been able to reach agreement.

I believe

your officials take the view that we are committed to a further meeting with the Australians before the latter approach thrid countries and that not to have one would put us at a tactical disadvantage vis-a-vis the Australians.

I am, however, concerned lest further talks now would give

the impression to third countries that we were already committed in principle and were ganging up against them.

In view of Australian efforts to get us to give that

commitment before approaching third countries, I consider

/that

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