GR 350
PRIORITY
PHER CAT A
CONFIDENTIAL
HKK 184!!
Ho: 51
RECEIVED HERRY NO: 51 1 7 JUL 1978
OPK OFFICER INDEX
PA
REGISTRY Action Teken
FM HONG KONG 14110OZ
CONFIDENTIAL
No
TO PRIORITY F C O TELNO 886 OF 14 JULY 1978
INFO CANBERRA, HONG KONG GOVERNMENT OFFICE LONDON.
CANBERRA TELNO 11 TO FCOɛ UK/AUSTRALIA AIR SERVICES TALKS.
WE HAVE NOW RECEIVED THE MATERIAL AND ARE BOUND TO SAY THAT WE ARE
DISAPPOINTED, THERE IS NOTHING NEW IN THE FIGURES PROVIDED IN TABLES 1 TO 4 AND, INDEED, WE COULD HAVE PRODDUCED THE SAME FIGURES VERY QUICKLY,
2. THE INDICATIVE FARES PROPOSED IN TABLE 5 PROVIDE FOR
SUBSTANTIAL CUTS IN NORMAL FARES FROM AUSTRALIA TO HONG KONG,
BUT INCREASE THE DIFFERENTIAL BETWEEN FIRST AND ECONOMY FARES, THE
THRIFT FARE IN THE HIGH SEASON IS NOT A GREAT DEAL LESS THAN THE
PROPOSED ECONOMY FARE.
3. WE WERE TOLD IN YOUR TELNO 302 THAT THE AUSTRALIANS HAD DONE
A LOT MORE HARD WORK SINCE MARCH AND HAD THOUGHT THEIR PROPOSALS
THROUGH CAREFULLY. FURTHER, THAT THE QUALITY OF THEIR ECONOMIC ANALYSIS WAS IMPRESSIVE. THIS CAN HARDLY BE SAID OF THE HONG KONG
ROUTE AND, INDEED, THERE IS NO ECONOMIC RATIONALE FOR THEIR PROPOSALS. HOW DID THEY ARRIVE AT THE CONCLUSION THAT THERE WAS
PROBABLY ENOUGH END-TO-END TRAFFIC TO JUSTIFY 2 X 3707 SERVICES PER WEEK ON THE HONG KONG - W AUSTRALIA ROUTE (YOUR TELNO 462) ?333
4. WE HAVE PASSED THE PAPERS ON TO CPA AND WILL DO OUR BEST TO
DRAW CONCLUSIONS FROM THE MATERIAL BUT, UNLESS THE AUSTRALIANS CAN
PROVIDE AN ECONOMIC ANALYSIS OF THE APPARENT QUALITY OF THE
TRUNK ROUTE ANALYSIS, WE WILL BE IN NO POSITION TO GIVE A SOUND OPINION ON THE PROPOSAL TO IMPOSE A 3/4 FREEDOM ONLY REGIME IN TC3,
ROBERTS
FILES
MAGD
HK SGD
swpo
[COPIES SENT TO
HISS BROWN
CAD/DOT]
COPIES To!
HONG KONG GOVT OFFICE
CONFIDENTIAL
LONDON