*

They also

countries could be brought to recognise the benefits that could accrue to them under the scheme. argued that the interests in this context of the individual members of ASEAN are so divergent that ASEAN will not be able to maintain a common position. The Australians may well turn out to be right but there is some risk that those most affected (Singapore) or those that think they stand to lose will win support against the scheme by appeals to ASEAN solidarity or North/South considerations. Mr Lee Kuan Yew has already, taken the line in public: "If the developed world chooses to bypass the undeveloped parts of the world I can only see it accentuating the divide (between them)" There is a risk that the ASEAN leaders could point out that our association with the Australian scheme is at variance with our professed concern for ASEAN. ASEAN have expressed concern to the Australians at the possible harmful effects in ASEAN countries if stopovers are not permitted and the hope that the Australian Government would give careful consideration to ASEAN interests. Opponents of the scheme will also criticise it as being protectionist and a cartel between the two national airlines. There is also a risk that the ASEAN countries and India will over-react to the immediately evident disadvantages of the scheme for them, and be sceptical of the benefits, particularly of the Australian contention that there will be an increase in longer-stay tourists to make up the loss from stop-over tourists. It will be up to the Australians to convince the countries concerned that Australian tourists will fill the gap; it is most unlikely that there will be sufficient growth in the number of British tourists in the area to do so.

(c) Europe

With

The Australiam intend to negotiate the same kind of agreement with some European countries as with us (probably Yugoslavia, Greece, Italy and FRG and possibly Netherlands), ie restricted to an exchange of end-to-end rights. Frequency of services would have to be reduced probably by up to 50% depending on the route. others (probably France and Austria and possibly Netherlands), if end-to-end traffic is not enough to justify a service, they will terminate their agreements. They believe that European opposition will not be strong enough to block the scheme. The Dutch have already publicly expressed disquiet at the scheme, describing it as protectionist, and contrasting Australia's position with its opposition to alleged Community protectionism.

- 6

Page 165Page 166

Share This Page