145
GRS 400
CONFIDENTIAL
CONFIDENTIAL
FM BCARFE HONG KONG 210610Z FEB 79
TO PRIORITY DO T
TELEGRAM NUMBER ALLOT 9 OF 21 FEBRUARY
AND TO PRIORITY JAKARTA
HRK 184/1
KLOVED
YNC. 51
22 FEB 1979
INDEX
No
77.2
RE
FOR STABLES FROM WILSON.
FCO TELNO 167 TO HONG KONG,
1. I NUDERSTAND FROM LATHAM THAT HONG KONG WILL BE ADVISING
THEIR PREFERENCE FOR A SIMPLE SIX-MONTHS' EXTENSION OF
ARRANGEMENTS EXPIRING ON 31 MARCH. SINCE RISAKOTTA AND KARDO NO
STATED SAME PREFERENCE TO ME AT KATHMANDU MEETING IN NOVEMBER,
I WOULD ANTICIPATE NO DIFFICULTY IN NEGOTIATING SUCH A DEAL.
2. WHILE I WOULD EXPECT THAT DEAL COULD EASILY BE ACHIEVED BY
EMBASSY ACTION IN JAKARTA (PARA 3 OF TUR REFERS), JAKARTA'S TELNO 10 TO HONG KONG REPORTS A SPECIFIC INDONESIAN INVITATION
TO MEET THERE ON 12 MARCH: AND THERE ARE THREE REASONS WHY I
THINK WE SHOULD ACCEPT IT. FIRST, BOTH RISAKOTTA AND KARDONO HAVE
TOLD ME THAT THEY WOULD LIKE EVENTUAL SUBSTANTIVE ROUND OF
NEGOTIATIONS (PRESUMABLY IN SEPTEMBER 1979) TO TAKE PLACE OUTSIDE INDONESIA EITHER IN HONG KONG OR LONDON AND IT WOULD BE PRUDENT
TO ACCOMMODATE THEM. SECONDLY, JAKARTA TELNO 10 INDICATES THAT THERE WILL BE USEFUL GENERAL INFORMATION ABOUT ASEAN ATTITUDES TO ICAP TO BE PICKED UP ON PERSONAL BASIS FROM RISAKOTTA AROUND 12 MARCH. THIRDLY, IN LIGHT OF THOSE ASEAN DEVELOPMENTS IT WHOULD ALSO BE POSSIBLE TO GET SOME INDICATION FROM RISAKOTTA OF THE KIND OF SUBSTANTIVE UK/INDONESIA DEAL HE ENVISAGES IN POST ICAP SITUATION. FROM OUR POINT OF VIEW, WE NATURALLY HOPE T AT CPA'S WITHDRAWAL FROM KUALA LUMPUR/JAKARTA AND JAKARTA/PERTH SECTORS MAY LEAD TO OUR ACQUISITION OF RIGHTS AT BALI AND TO REMOVAL OF SEAT-RESTRICTIONS ON SINGAPORE/JAKARTA. SIMILARLY, WE MAY HOPE THAT GARUDA'S RUMOURED ACQUISITION OF B747S WILL REMOVE ANY DIFFICULTIES OF EVENTUAL CPA PARTIAL OR TOTAL SUBSTITUTION OF B747S FOR TRISTARS. HOWEVER, INDONESIAN RELUCTANCE TO EASE SEAT-RESTRICTIONS AND TO CONCEDE ACCESS TO BALI MAY TAKE THE FORM OF A PROPOSAL TO REDUCE CURRENT FREQUENCIES (FROM 10
CONFIDENTIAL
/TO, SAY, Y)
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