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Mr Mcharen.
Please watch the HK. end of this. Carefully
TO PRIORITY F.C.O TELNO.1232 OF 26 OCTOBER 78,
INFO CANBERRA, HONG KONG GOVERNMENT OFFICE LONDON.
YOUR TELNO.780 : U.K/AUSTRALIA AIR SERVICES.
D
26/*
1. IN SOME RESPECTS OUR VIEWS ON THE AUSTRALIAN PROPOSALS ARE NOT THE SAME AS CPA'S AND, BECAUSE OF THE IMPORTANCE OF THE ISSUE,
IT WOULD BE BEST TO SET THEM OUT SEPARATELY.
2. CPA VIEWS.
A. GENERAL.
(1) THEY ARE TOTALLY OPPOSED TO THE IDEA THAT, IN ORDER TO ACCEPT AN AUSTRALIAN PROPOSAL (DESIGNED TO SUIT AUSTRALIAN NEEDS), H.M.G SHOULD WITHDRAW FROM CPA TRAFFIC RIGHTS WHICH HAVE ENABLED THEM TO PIONEER A ROUTE CONNECTING HONG KONG
WITH WEST AUSTRALIA AND TO PROVIDE THE ONLY SAME-PLANE SERVICE
ON THIS ROUTE OVER THE LAST EIGHT YEARS.
(11) THEY HAVE GRAVE FEARS THAT ACCEPTANCE BY THE U.K OF A PURELY 3/4TH FREEDOM REGIME WITH THE AUSTRALIANS WOULD HAVE WORLD-WIDE IMPLICATIONS AND MIGHT AFFECT THE ATTITUDE OF THIRD NATIONS TOWARDS THE EXCHANGE OF FIFTH FREEDOM RIGHTS.
THEY ARE ALSO WORRIED ABOUT POSSIBLE ASEAN REACTION, IN PARTICULAR, THE DENIAL OF OVERFLYING RIGHTS BY THE INDONESIANS.
[11) THEY ARE WARY OF THE REACTION FROM SINGAPORE WHICH COULD RESULT IN CAPACITY DUMPING IN THE REGION. AN ADDITIONAL POINT IS THAT H.M.G PAID HEAVILY IN THE REGION FOR EXTRA B.A TRUNK FREQUENCIES SINGAPORE/AUSTRALIA WHICH WOULD BE WORTHLESS UNDER
THE NEW REGIME.
(IV) THE NEW REGIME COULD WELL RESULT IN THE SEVERANCE OF LINKS BETWEEN HONG KONG AND DARWIN AND POSSIBLY PERTH. FREQUENCY TO
BRISBANE AND MELBOURNE WOULD ALSO BE REDUCED.
CONFIDENTI AL
́/(V) THEY SUPPORT