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GR 400
CONFIDENTIAL
DESKBY 100100Z
F1 FCO 091750Z MAY 79
TO IMMEDIATE CANBERRA
CONFIDENTIAL
:
TELEGRAM NUMBER 149 OF 9 MAY 1979
HKK.184/1
INDEX
150.
10 MAY 1979
No No
r
See F36
f
AND TO IMMEDIATE MANILA (PLEASE PASS TO KNIGHTON) ROUTINE KUALA LUMPUR, SINGAPORE, BANGKOK, JAKARTA, HONG KONG (COV AND ECARFE) INFO WELLINGTON
YOUR TELNO 225: UK/AUSTRALIA AIR SERVICES.
1. WE ARE STUDYING REPORTS OF THE ASEAN/AUSTRALIA TALKS AND TRY ING TO EVALUATE THE LIKELY EFFECT OF THE PACKAGE DEAL ON OUR INTEREST.
THESE ARE OUR PRELIMINARY VIEWS.
2. WE ARE DISAPPOINTED THAT THE AUSTRALIANS WENT SO FAR BEYOND WHAT THEY AGREED WITH US ON STOPOVER FARES. RAINBIRD'S VIEW IN THE FIRST SENTENCE OF PARAGRAPH 7 OF YOUR TELEGRAM UNDER REFERENCE IS HARD TO ACCEPT. CALCULATIONS DONE BY BA WHEN ROWLAND WAS HERE INDICATED AN INCREASING AND CONSIDERABLE LOSS OF REVENUE IF A LOWER. STOPOVER SURCHARGE WERE APPLIED. BA ARE CALCULATING THE EFFECT OF THE AUSTRALIAN DOLLAR 150 SURCHARGE. IT IS VERY LIKELY THAT WE SHALL EE SEEKING COMPENSATION OF SOME FORM FROM THE AUSTRALIANS, EG TRAFFIC RIGHTS OR AN INCREASE IN THE SPECIAL APEX FARES.
3. YOUR PARGRAPH 9. AS ROGERS INDICATED PRIVATELY TO ROWLAND IN LONDON, WE WOULD NOT OBJECT TO A TOKEN CONCESSION TO ASEAN ON ACCESS TO THE SPECIAL APEX FARES AND THROUGH TRAFFIC, SO LONG AS IT WAS TAKEN FROM THE QANTAS SHARE OF CAPACITY. WE NOTE HALTON'S COMMENT (PARA 9 OF TELEGRAM UNDER REFERENCE) BUT IT WOULD SURELY BE DIFFICULT FOR AUSTRALIA TO BACK DOWN FROM THE POSITION THEY HAVE NOW TAKEN WITH ASEAN, THE ADMINISTRATION OF THE ARRANGEMENT IS ALSO LIKELY TO BE VERY COMPLICATED. SINCE QANTAS ARE THE ONLY AIRLINE INVOLVED WITH ALL THE EUROPEAN DESTINATIONS AS WELL AS THE UK, WE THINK THEY ALONE SHOULD CONTROL THE ARRANGEMENT,
CONFIDENTIAL
/Lt.