CONFIDENTIAL

GR 565

CYPHER CAT A

FM BCARFE HONG KONG 190240Z

CONFIDENTIAL

HKK184/1

RECEIVED MELY NO. 51

20 OCT 1978

DECK OFFICER

PA

PEGISTRY Action Taken

INDEX

TO IMMEDIATE DOT TELNO ALLOT 26 OF 19 OCTOBER 1978

INFO PRIORITY BRUNEI.

FOR STABLES FROM WILSON.

Ne

YOUR ALLOT 152.

1591

1. MANY THANKS FOR YOUR VERY HELPFUL CLARIFICATIONS.

2. I ANTICIPATE MAIN DIFFICULTY WITH RBA WILL ARISE FROM THEIR INTEREST IN 5TH FREEDOM RIGHTS TO THAILAND AND SINGAPORE. IN

THAI CASE I BELIEVE THAIS WILL BE UNWILLING TO CONCEDE OR EXCHANGE

ANY 5TH FREEDOM RIGHTS IN ABSENCE OF ANY REAL THAI INTEREST EVEN

IN 3RD/4TH RIGHTS. SINCE BRUNIANS WILL THUS LACK ANY BARGAINING

POWER IT SHOULD NOT BE TOO DIFFICULT IN ACTUAL NEGOTIATIONS TO LIMIT ENVISAGED EXCHANGE TO 3RD/4TH RIGHTS ONLY. HOWEVER I CANNOT

SEE ON WHAT GROUNDS RELATED TO THEIR OWN INTEREST BRUNEI OR RBA

COULD BE DISSUADED FROM ASKING US (AS THEIR AGENTS) AT LEAST TO

ATTEMPT GETTING 5TH FREEDOM RIGHTS FOR RBA. PAST EXPERIENCE

SUGGESTS THAT RBA WOULD DISREGARD ANY WARNINGS THAT BY ASKING THAIS

FOR TOO MUCH THEY MIGHT HARDEN THAI ATTITUDE AGAINST THEM. SINCE WE SHALL BE SIMULTANEOUSLY SEEKING BRUNEIAN GENEROSITY IN RESPECT

OF BA SERVICES TO AND BEYOND BRUNEI, IT COULD BE DANGEROUS TO BE

SEEN BY BRUNEI AS SEEKING TO THWART EVEN ATTEMPT TO GET 5TH

FREEDOM RIGHTS FROM THAILAND.

3. IN SINGAPORE CASE MUCH THE SAME CONSIDERATIONS APPLY EXCEPT

THAT BRUNEI HAS ALREADY HAD SOME EXPERIENCE OF TOUGHNESS OF SINGAPORE REACTIONS TO WHAT SIA HAVE REGARDED AS OVER-WEANING RBA

AMBITIONS AND OF BRUNEI'S OWN INABILITY ULTIMATELY TO STAND UP TO

SINGAPORE. RBA MAY CONSEQUENTLY BE MORE READY IN THIS CASE TO

APPRECIATE DANGER OF PRESSING THEIR 5TH FREEDOM REQUIREMENTS. ON THE OTHER HAND RBA'S NEW MANAGEMENT SEES ONLY THAT SIA HAS MULTIPLE

5TH FREEDOM RIGHTS WHILE RBA HAS NONE. THE EXPLANATION WE HAVE

CONFIDENTIAL

/ SO FAR

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