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THE TALKS WITH THE SINGAPOREANS HAD BEEN EXTENDED BEYOND THE TWO DAYS SET. THE SINGAPOREAN RESPONSE HAD BEEN MUTED DO FAR BUT WE MUST HAVE KNOWN TOO THAT '' A NOISE FROM THEM WAS TO BE

EXPECTED''. AUSTRALIA HAD TAKEN THE DECISIVE ACTION THREE WEEKS AGO IN SERVING NOTICE OF TERMINATION OF THE COMMERCIAL

AGREEMENT.

3.

I ACKNOWLEDGED THE SIGNIFICANCE OF THESE DEVELOPMENTS BUT EXPLAINED THAT UNTIL NOW THERE HAD REALLY BEEN LITTLE OF SUBSTANCE FOR US TO WORK ON. UNDER PRESSURE MR NIXON ACCEPTED

THAT WE MIGHT NEED TO DISCUSS THE POSITION WITH AT LEAST SOME OF THE ASEAN COUNTRIES BUT HE HOPED THAT IF SO THIS COULD BE DONE EXTREMELY QUICKLY, PERHAPS THROUGH OUR POSTS. I TOLD HIM THAT, WHEREVER IT WAS DONE, WE HAD ALWAYS SEEN THE NEED TO MAKE OUR OWN SOUNDINGS OF THE S. E. ASIANS: MOREOVER WE HAD SOME PRACTICAL PROBLEMS OF OUR OWN TO DISCUSS. HE FOUND IT HARD TO ACCEPT THAT ANYTHING MUCH OF SUBSTANCE REMAINED. HE SAID QUOTE WE HAVE DONE YOUR WORK FOR YOU UNQUOTE AND REMARKED POINTEDLY THAT LONDON HAD NEVER BEEN ABLE TO INDICATE PRECISELY

HAT ACTION WAS REQUIRED IN S.E. ASIA TO CRYSTALLIZE OUR AGREEMENT. HE REPEATEDLY STRESSED HIS BELIEF THAT AUSTRALIA HAD MET TO THE LETTER THE U.K.'S REQUIREMENTS AGREED IN THE EARLY DAYS AND HE COULD SEE NOTHING TO PREVENT THE PRE- CHRISTMAS ANNOUNCEMENT HE VISHES TO MAKE. HE HAD EXPLAINED THE PRESENT POSITION TO THE PRIME MINISTER WHO FULLY ENDORSED HIS STANCE. HE DID NOT BELIEVE THAT THE CONCORDE OR HONG KONG- PERTH PROBLEMS SHOULD BAR THE WAY.

MR NIXON MENTIONED THAT IN LONDON RECENTLY BRITISH OFFICIALS HAD DISCUSSED WITH THE AUSTRALIANS THE POSSIBILITY OF A LOW

FARE PACKAGE OPERATING FOR A TRIAL PERIOD IN FEBRUARY AND MARCH, BUT WITHOUT COMMITMENT. I SAID I WAS NOT IN THE PICTURE ON THIS BUT IT SOUNDED LIKE AN ATTEMPT TO SUGGEST A HELPFUL COMPROMISE. HE SAID THERE WERE REAL MARKETING 03JECTIONS TO

THIS IDEA.

5. IN DISCUSSION OF THE SUBSTANCE OF PARA 1D OF YOUR TELEGRAM

UNIDER REFERENCE, MR NIXON SAID FLATLY HE DID NOT ACCEPT THAT SINGAPORE COULD IMPEDE OR BLOCK THE PROPOSALS. MALAYSIA, THAILAND AND INDONESIA WOULD NOT JOÏN AN ASEAN ANTI-AUSTRALPEN BLOC. HALTON SAID HE UNDERSTOOD THAT AT A RECENT ASEAN MEETING SINGAPORE HAD TRIED TO PUSH THROUGH AN ANTI-ICAP RESOLUTION BUT HAD BEEN REBUFFED. SINGAPORE ITSELF COULD NOT BLOCK THE AUSTRALIAN PROPOSALS BECAUSE IN THE LAST RESORT FLIGHTS BETWEEN AUSTRALIA AND THE U.K. DID NOT DEPEND ON

2

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TRANSPORT

/SINGAFORE.

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