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CONFIDENTIAL
faa.
AS 1350 CONFIDENTIAL
DESKBY 081400Z
FM CANBERRA 081155Z DEC 78
TO IMMEDIATE FCO
TELEGRAM NUMBER 628 OF 8 DECEMBER
Akk 18411 M
RELAT
NG. 51
OFFICER
RE: **
IND
PA
Action Taken
INFO KUALA LUMPUR BANGKOK HONG KONG (GOVERNOR AND BCARFE) JAKARTA MANILA DELHI PARIS THE HAGUE BONN ROME BALGRADE
ATHENS WELLINGTON
YOUR TELNO 598:
UK/AUSTRALIA AIR SERVICES
¡ SPOKE TO MR NIXON TODAY AS INSTRUCTED. HALTON WAS PRESENT.
1 EXPLAINED THAT WE HOPED TO GIVE A SUBSTANTIVE ANSWER NEXT WEEK.
¦ STRESSED SEVERAL TIMES THAT OUR POSITION HAD NOT CHANGED. WE
HAD SAID WE WERE IN FAVOUR OF CHEAP FARES
BUT WE HAD ALWAYS MADE IT CLEAR THAT WE SHOULD NEED TO TAKE SOUNDINGS OF THE S.E. ASIANS AND THEN TALK TO THE AUSTRALIANSA BEFORE WE COULD MAKE AN ACTUAL COMMITMENT. WE WOULD MOVE AS QUICKLY AS WE COULD BUT WE NEEDED TO KNOW THE RESULTS OF THE AUSTRALIANS' RECENT DISCUSSIONS, PARTICULARLY WITH SINGAPORE, PEFORE WE COULD START OUR OWN SOUNDINGS. IT WAS THE SLIPPAGE OF
TIME, FOR WHICH WE HAD BEEN IN NO WAY RESPONSIBLE, WHICH HAD THREATENED HIS TIME-TABLE OF AN ANNOUNCEMENT BEFORE CHRISTMAS
AND A START ON 1 FEBRUARY.
2.
DESPITE THIS MR NIXON SEEMED TO HAVE DIFFICULTY IN
f
GRASPING WHAT OUR PROBLEM WAS. HIS ATTITUDE WAS THAT IN EFFECT
AUSTRALIA HAD DONE OUR JOB FOR US AND THAT THERE WAS NO GOOD
REASON WHY THERE COULD NOT BE AN ANNOUNCEMENT BEFORE CHRISTMAS
07 A 1 FEBRUARY START. CTHERWISE THE BAD STATE OF THE BOOKING
SITUATION WOULD CERTAINLY WORSEN AND HE UNDERSTOOD B A WERE JUST AS WORRIED FINANCIALLY AS QANTAS. HE WAS CONSCIOUS THAT BRITISH REPORTING OF REACTIONS IN ASEAN COUNTRIES HAD BEEN LESS OPTIMISTIC THAN AUSTRALIA. BUT IN THE LAST WEEK THERE
HAD BEEN VERY IMPORTANT DEVELOPMENTS. COMMERCIAL AGREEMENTS
WITH THAI AIRLINES, MAS AND GARUDA WERE ALL FIRM. THERE WOULD BE NO DIFFICULTY ABOUT SECURING MALAYSIAN AND THAI
QMOVERNMENTAL APPROVAL AND THE INDONESIANS HAD SAID THERE
WOULD BE NO NEED FOR FURTHER GOVERNMENT TO GOVERNMENT TALKS. THE TALKS
CONFIDENTIAL