GRES 320
ONFIDENTIAL
PJAKARTA 0704002 FEB 79
CONFIDENTIAL
f.A
HKK 184||
KELLY
جا
TO PRIORITY F C O
TELNO 52 OF 7 FEBRUARY
INFP PRIORITY KUALA LUMPUR SINGAPORE CANBERRA, ROUTINE BANGKOK MANILA AND HONG KONG (FOR GOVERNOR AND BCA) (2.
MY TELNO 47: UK/AUSTRALIA AIR SERVICES
1. THE AUSTRALIAN AMBASSADOR AND I SPOKE WITH MOCHTAR AT THE NEW ZEALAND NATIONAL DAY RECEPTION (6FEBRUARY). MCCTAR EXPRESSED GREAT
RELIEF THAT SINGAPORE'S COMPLAINT AGAINST AUSTRALIA'' WOULD NOW
BE CONSIDERED IN KUALA LUMPUR UNDER THE MALAYSIAN MINISTER OF
COMMUNICATION'S CHAIRMANSHIP AND NOT HIS OWN. ALTHOUGH ASEAN
SOLIDARITY WOULD CLEARLY NEED TO BE PRESERVED HE MADE NO SECRET OF
HIS OWN INCLINATION TO DEPOLITICISE THE ISSUE AND TREAT IT AS A
TECHNICAL CIVIL AVIATION MATTER. HIS COMPLETE ABSENCE OF RANCOUR
WAS REFRESHING. HE ADDED HIS OWN ADMIRING WONDERMENT THAT BRITAIN
HAD SO FAR ESCAPED SINGAPRORE'S WRATH.
2. ACCORDING TO THE AUSTRALIANS, THE INDONESIANS DO NOT EXPECT THAT A NEW ASEAN/AUSTRALIAN MEETING CAN BE SET FOR SOME THREE WEEKS. BUT THE BILATERAL INDONESIAN/AUSTRALIAN AGREEMENT REFERRED TO IN MY TELNO 46 HAS NOW BEEN SIGNED, AND WILL BE IMPLEMENTED IMMEDIATELY. THIS PROVIDES FOR QANTAS TO OPERATE 3 B747'S TO DENPASAR AND JAKARTA WEEKLY, INSTEAD OF THE FIVE 707'S (NOT ALL OF WHICH CAME TO JAKARTA) UNDER THE OLD ARRANGEMENT. GARUDA WILL NOW BE ABLE TO OPERATE FIVE DC10'S PER WEEK TO ANY GATEWAY OF THEIR CHOICE IN AUSTRALIA, THIS REPRESENTS A SUBSTANTIAL INCREASE IN CAPACITY ON THE INDONESIA/AUSTRALIA ROUTE, WHICH COULD ONLY BE MADE ECONOMIC BY LOWER FARES. UNTIL AGREEMENT IS REACHED ON THE PROBLEMS RELATED TO ICAP, HOWEVER, PRESENT FARES WILL BE MAINTAINED, AT A LOSS TO GARUDA.
O'BRIEN
[COPIES SENT TO CAD/DOT]
MAED
FILES
MISS BROWN
SPD
MR MURRAY
SEAD
RED
HK & GD
NEWS D
OID
MR PUTLER
CONFIDENTIAL