GRS 185
UNCLASSIFIED
DESKBY FCO 150933Z
TOMMEDIATE FCO
FM KUALA LUMPUR 159445Z DEC
TELNO 542 OF 15 DECEMBER
Akk184/1
RELIVED IN AIGIS
1 DEC 191
OFFICER
INDY
FA
Taken
INFO PRIORITY CANBERRA
INFO SINGAPORE, BANGKOK, MANILA, JAKARTA, HONG KONG (GOVERNOR AND RCARFE)
UK/AUSTRALIA AIR SERVICES
1. AFTER YESTERDAY'S MEETING OF THE ASEAN ECONOMIC MINISTERS THE DEPUTY PRIME MINISTER, DR MAHATHIR, SPOKE TO THE PRESS ABOUT ICAP. MINISTERS HAD HAD A CLOSED DOOR SESSION WITHOUT OFFICIALS,
2. HE SAID THAT ASEAN VIEWS PROPOSED AUSTRALIAN POLICY QUOTE WITH APPREHENSION UNQUOTE AND HOPES TO GET AUSTRALIA TO RECONSIDER THE PROPOSAL TO SAFEGUARD ASEAN'S INTEREST. NO RETALIATORY MEASURES HAVE BEEN PROPOSED BUT THEY MAY BE TAKEN IF ASEAN FINDS ITSELF PUSHED TO THE WALL.
3. HE SAID ASEAN WAS OPTIMISTIC ABOUT REACHING A COMMON STAND VIS-A-VIS AUSTRALIA BECAUSE ALL FIVE MEMBERS WERE SERIOUSLY AFFECTED BY THE AUSTRALIAN PROPOSAL. THE PROPOSED POLICY WOULD CAUSE SUBSTANTIAL LOSSES TO ASEAN'S TOURIST TRADE. EVEN IF THERE WAS PROVISION FOR STOPOVERS THE FARES WOULD BE SO PROHIBITIVE THAT PEOPLE WOULD NOT WISH TO AVAIL THEMSELVES OF THEM. MINISTERS WERE LOOKING INTO THE POSSIBILITY OF ASKING AUSTRALIA TO STRUCTURE FARES
A HABIT SO THAT STOPOVER TRAFFIC IS NOT AFFECTED LOW FARES HAD CF ADVERSELY AFFECTING SMALL AIRLINES.
4. HE STRESSED THAT ASEAN WOULD TALK DIRECTLY AND NOT CALL A THIRD COUNTRY TO ACT AS MEDIATOR.
HAWLEY FILES
MAED
SWPD
HK YG D
[COPIES SENT TO CAD / DOT
MISS BROWN
MR CORTAZZI
MA MURRAY