GPS 48%

CONFIDENTIAL

CONFIDENTIAL

НИК

also. av.

026/5.

Hrk 184/1.

1973

i 237 t

Lee 3.02

FM KUALA LUMPUR 011835Z JULY 79

TO PRIORITY FCO

TELEGRAM NUMBER 238 OF 1 JULY

HPT & AIR SERVICES AGREEMENT AND CONCORDE

1. AT THE BREAKFAST WITH GHAZALI ON 1 JULY AND AT THE SUBSEQUENT

MEETING WITH HUSSEIN ONN THE SECRETARY OF STATE WAS PRESSED HARD

ON CIVIL AVIATION.

2. HUSSEIN ONN STRESSED THAT WE SHOULD LOOK AT THE AIR SERVICES

FROM A BROADER PERSPECTIVE. HE THOUGHT THAT WE WERE MAGNANIMOUS

ON THE BIG THINGS BUT NIGGLING ON SMALL MATTERS. HOWEVER, THESE

SMALL THINGS COULD HAVE A WIDE-RANGING EFFECT ON OUR OVERALL

RELATIONS. PUBLIC OPINION IN MALAYSIA COULD NOT UNDERSTAND WHY WE

WERE BEING SO MEAN. AT THE LAST ROUND OF TALKS WE HAD MADE NO

REAL PROGRESS, WE HAD PUT IN SO MANY PROVISOS, AND ON THE QUESTION

OF FIFTH FREEDOM RIGHTS BEYOND HONG KONG THERE HAD BEEN REGRESSION

INSTEAD OF PROGRESSION. IF IN THE NEGOTIATIONS WE DID NOT SHOW

CONSIDERATIONFOR MALAYSIAN INTERESTS, ANTI-BRITISH GROUPS WOULD

TRY TO EXPLOIT THIS TO THE DETRIMENT OF OUR OVERALL RELATIONS-

AND WOULD MAKE THINGS MORE DIFFICULT FOR THE GOVERNMENT ON CONCORDE.

3. HUSSEIN ONN, HOWEVER, MADE IT CLEAR THAT IT WAS NOT IN HIS NATURE TO TAKE ADVANTAGE OF THE TROUBLES OVER AIR SERVICES TO

MAKE DIFFICULTIES FOR US ON CONCORDE. HE INTENDED THAT THIS

SHOULD STILL BE DEALT WITH SOLELY ON WHETHER OR NOT IT CAUSED

ENVIRONMENTAL PROBLEMS AND SO FAR THERE HAD BEEN NO REAL

DIFFICULTIES.

4. BOTH HUSSIN ONN AND GHAZALI ALLEGED THAT WE WERE FAVOURING

SINGAPORE AT THE EXPENSE OF MALAYSIA. WE HAD, THEY SAID, BEEN UNFAIR TO MALAYSIA FROM THE OUTSET WHEN MALAYSIA/SINGAPORE AIRLINES

HAD BROKEN UP.

CONFIDENTIAL

15.

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