Omit / 1. The earlier

lver droft read "None is

Satisfactory?

AG.

← but did

that the

not

say Australians had rejected the alternatives as this one does.

affected and Lee Kuan Yew will probably react sharply.

Malaysia's initial reaction could also be adverse but we

hope that when the full implications of the proposals are

explained to her, she will view them at worst with

neutrality. There is a risk that irrespective of their

separate air service/tourist interests, the countries

concerned would gang up to block the scheme by a total

refusal to cooperate eg by denying overflying and landing

rights. There could also be opposition to the scheme

from some countries in Europe (particularly from the Dutch

if KLM services stopped) but this would probably not be

strong enough to block it. (Paragraphs 6 and 7).

7 There are implications for Hong Kong. At first sight

they do not appear very serious but the Hong Kong

Government and Cathay Pacific Airways are still studying

the proposal. It is too early to give the Australians a

reply in respect of the Australia/Hong Kong routes

(Paragraph 8).

8

In theory, there are a number of alternatives to the

Australian proposals. The Australians examined several of

these in their policy review and rejected them. In practice,

none would be satisfactory to us

Conclusions and Recommendations

(Paragraph 9).

9 The Australian proposals offer economic and social

benefits, but politically there are some disadvantages:

Singapore and Malaysia are likely to be upset, the former

especially, and there is some risk that the mid-point

countries concerned would gang up to block the scheme

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