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9
GRS 450
CONFIDENTIAL
FM CANBERRA C 26563AZ JAN 79
TO IMMEDIATE FCO
TELEGRAM NUMBER 67 OF 26 JANUARY
: HKL .184/1
لا
Act
No
Jak &
1994
INFO IMMEDIATE (ALL DESKBYS 260730Z) SINGAPORE JAKARTA MANILA KUALA LUMPUR HONG KONG (GOVERNOR AND BCARFE) INFO ROUTINE WELLINGTON
MY TELEGRAM NO 55: UK/AUSTRALIA AIR SERVICES DISCUSSIONS
1.
MIFT CONTAINS TEXT OF LETTER IN THE NAME OF ASEAN TO MR PEACOCK WHICH WAS HANDED BY THE INDONESIAN MINISTER OF FOREIGN AFFAIRS TO THE AUSTRALIAN AMBASSADOR IN JAKARTA LAST NIGHT, 25 JANUARY.
2.
SUBJECT TO MINISTERIAL APPROVAL, THE AUSTRALIANS ARE PROPOSING TO REPLY ON THE LINES THAT:
(A) THEY PROVIDED EVERY OPPORTUNITY FOR THE ASEANS TO DISCUSS THEIR PROPOSED STOPOVER FARES AT THE MEETING HERE FROM 8-11 JANUARY BUT THE ASEANS SAID THEY HAD NO AUTHORITY TO NEGOTIATE.
(B) THEY CANNOT DEFER THE INTRODUCTION OF THE NEW END-TO-END FARES WITH THEIR CONSIDERABLE BENEFITS TO CONSUMERS.
(C) THE NEW END-TO-END FARES ARE FINELY JUDGED AND DEPEND ESSENTIALLY UPON ACHIEVING A VERY HIGH SEAT FACTOR. THIS MEANS THAT THE CAPACITY NEEDS TO BE TIGHTLY CONTROLLED AND THIS CAN ONLY BE DONE BY LIMITING CARRIAGE TO THE TWO NATIONAL CARRIERS.
(D) ON THE OTHER HAND THEY (AND WE) HAVE BEEN GIVING VERY CAREFUL CONSIDERATION TO THE CONCERNS EXPRESSED BY THE ASEAN COUNTRIES ABOUT THE EFFECT ON ASEAN TOURIST TRAFFIC AND HAVE DEVELOPED REVISED STOPOVER PROPOSALS WHICH WOULD NOT FULLY COVER AIRLINE COSTS BUT WHICH THEY BELIEVE WOULD BENEFIT ASEAN TOURIST INDUSTRIES.
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/(E) THEY