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GRS 330
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H WELLINGTON 030321Z JAN 79
ho PRIORITY FCO
TELEGRAM NO 1 OF 3 JANUARY
HCEIVED IN GRÁISTEM NO. 51 - JAN 1979
INFO CANBERRA, HONG KONG (FOR GOVERNOR AND BCAREE
MeYOUR TELEGRAM NO 290: UK/NZ AIR SERVICES
OFFICER
PA
Rnew
REGISTRY
Acton Tsia?
1. HEAD OF ECONOMIC DIVISION MFA, O'BRIEN, RAISED SUBJECT WITH ARCHER ON 28 DECEMBER (LETTER TO STABLES IN POST). HE SAID THAT
IT WOULD BE A WHILE BEFORE THE NEW ZEALANDERS WERE READY TO TAKE
THE UK/NZ BILATERAL DISCUSSIONS ANY FURTHER. THE INTER-DEPARTMENT
GROUP OF OFFI1IALS CONSIDERING FUTURE NZ CIVIL AVIATION POLICY
WOULD BE MEETING AGAIN IN JANUARY BUT INTRODUCTION OF LOW FARES
BETWEEN AUSTRALIA AND THE UK AND AUSTRALIA AND THE US NECESSITATED
A COMPLETE RETHINK OF NZ FUTURE POLICY. NZ HAD GAINED THE IMPRESSION
THAT CATHAY PACIFIC WERE ATTACHING LESS URGENCY TO ACCESS TO
AUCKLAND. HE WONDERED IF THIS CHANGED THE UK VIEW.
2. ARCHER SAID THAT HE COULD NOT COMMENT ON CATHAY PACIFIC'S PLANS.
HE HAD HEARD A RUMOUR THAT ANZ WAS NOW MORE INTERESTED IN THE
4
AUCKLAND/HONG KONG SECTOR SINCE THEY WERE ATTRACTING GOOD CARGO USAGE. HE WONDERED VWHETHER ANZ WOULD NOT NOW BE MORE INTERESTED IN THE PROPOSALS WHICH ROGERS HAD TABLED AT PREVIOUS BILATERALS.
IF ANZ LOST GROUND ON THE ROUTE TO CALIFORNIA OR WERE FORCED TO
LOWER PRICES TO AN UNECONOMIC LEVEL WOULD THEY TRY TO SWITCH
NZ PASSENGERS TO OTHER ROUTES E.G. THROUGH HONG KONG? IT SEEMED
THAT ANZ WOULD HAVE DIFFICULTY IN THE NEW LOW PRICE MARKET UNLESS
THEY BEGAN TO THINK SERIOUSLY ABOUT A THROUGH ROUTE TO THE UK OR
A COOPERATIVE PRICING OR SEAT SHARING ARRANGEMENT WITH BA.
3. O'BRIEN SAID THAT HE THOUGHT THIS WAS A FAIR ANALYSIS OF CURRENT
PROBLEMS BUT HE COULD NOT SPEAK FOR ANZ. HIS MINISTER WOULD BE
MEETING MR NIXON IN THE SECOND HALF OF JANUARY TO SEE WHETHER THEY
COULD REACH ANY ARRANGEMENT. WITH THE AUSTRALIANS TO GIVE NZ BENEFIT
FROM NEW FARE STRUCTURES. THE AMERICANS WOULD PROBABLY ALLOW ANZ
TO OPERATE THE NEW LOW FARE FROM CALIFORNIA. HE ACCEPTED THAT
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