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MATCHING THE WEST COAST ROUTE FARE. IF WE THOUGHT IT HELPFUL NEW

ZEALAND COULD UNILATERALLY FILE THE NEW FARE AS THERE WAS NO

BILATERAL REQUIRING PRIOR UK AGREEMENT. IF THERE WAS NO

BILATERAL AGREEMENT FORTHCOMING ON NEW FARES THEY MIGHT IN ANY CASE

NEED TO ACT UNILATERALLY:

a

3. ARCHER ASKED WHETHER NZ WOULD ALSO AGREE THE FARE FOR AMERICAN. OPERATORS. HEALY AGREED THAT BECAUSE OF THE NZ/US BILATERAL PANAM,

TMA AND PROBABLY CONTINENTIAL WOULD NEED TO BE ALLOWED SIMILAR FARES WE ASSUMED THAT THE PACKAGE WOULD NEVERTHE LESS BE ATTRACTIVE COMMERCIALLY TO BA WHO WOULD SHARE IN THE PASSENGER LOADING OBTAINED SY ANZ AND WOULD PROBABLY PICK UP PASSENGERS FROM CONTINENTIAL AS

WELL,

4. IT WAS CLEAR THAT NEW ZEALAND OFFICIALS WERE THINKING OF A WZ/UK SHORT SLACK SEASON LOW STOPOVER FARE TO BE BROUGHT IN IMMEDI- ATELY WHICH IF WE WISHED COULD BE

UNRECIPROCATED INITIALLY FROM THE UK. ARCHER DID NOT COMMENT ON THIS BUT WONDERS WHETHER ANZ WOULD NOT WANT TO ATTRACT PASSENGER TRAFFIC ORIGINATING IN UK THROUGH A RECIPROCAL FARE FROM THE UK. IF ROGERS CONTINUES TO SEE DIFFICULTIES IN AGREEING TO A STOPOVER FARE PENDING AN AGREEMENT WITH SINGAPORE WE WONDER IF IT MIGHT HELP TO EXPLORE WITH THE NEW ZEALANDERS LIMITING THE LOW FARE TO SAME DAY TRANSFER IN LOS ANGELES?

5. HEALY EMPHASISEDTHAT HE REMAINED UNDER STRONG PRESSURE

FROM NEW ZEALAND MINISTERS TO COME UP WITH A PROPOSAL FOR A VERY EARLY PUBLIC ANNOUNCEMENT OF A FARE. THERE HAD BEEN SOME DIS- CUSSION OF THIS IN CABINET THIS WEEK. HIS MINISTER WOULD

BE SEEING MR NIXON IN AUCKLAND NEXT WEEK AND IN AUSTRALIA FROM 2/23 FEBRUARY. AUSTRALIAN OFFICIALS WOULD BE COMING TO WELLINGTON FOR FORMAL DISCUSSIONS ON 27 FEBRUARY BUT MINISTERS WERE ANXIOUS TO ESTABLISH THAT THE NZ/UK FARES COULD BE AGREED WITHOUT REFERENCE TO THE AUSTRALIANS AND THEY HOPED FOR PROGRESS AHEAD OF THEIR TALKS WITH THE AUSTRALIANS.

6. GRATEFUL FOR YOUR EARLY REACTIONS TO THIS. WITH

WITH THE NEW ZEALAND PUBLIC NOW WANTING TO BOOK HOLIDAYS THE NEW ZEALANDERS HAVE AN

A/KWARD AND PRESSING POLITICAL PROBLEM, WE THINK THAT HEALY IS

TRYING HARD TO COBBLE TOGETHER A REALISTIC PROPOSAL AND WE WOULD LIVE TO REASSURE HIM THAT WE ARE DOING OUR BEST TO MEET NZ

DIFFICULTIES.

SMEDLEY

FILES

MARD

SAD

SEAD

HKYGD (6)

NAMD MISS BROWN HR STRATTON MR. HURRAY

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