CONFIDENTIAL
435
GRS 1750
CONDENTIAL
DESKBY 10 1909Z
FM CANBERRA 100638Z OCT 79
TO IMMEDIATE FCO
TELEGRAM NUMBER 556 OF 10 OCTOBER
184 ||
Hee 184 REVED IN 2
YMCA
1 1 OCT 1979
OFFICER
INFO PRIORITY HONG KONG (GOVERNOR AND BCARFE)
INFO ROUTINE WELLINGTON SINGAPORE BANGKOK JAKARTA
MANILA NEW DELHI
AIR SERVICES TALKS
1. DISCUSSIONS ON AIR SERVICES,
WITH
A
PARTICULAR RELATION TO ICAP, TOOK PLACE HERE BETWEEN 8 AND 10 OCTOBER. JOINT GOVERNMENT / AIRLINE TEAMS WERE LED ON THE AUSTRALIAN SIDE BY ROWLAND (FIRST ASSISTANT SECRETARY, DEPARTMENT OF TRANSPORT) AND ON OUR SIDE BY ROBERTS (DOT). AS ON PREVIOUS OCCASIONS, BOTH SIDES SPOKE VERY OPENLY, AND NO MAJOR DIFFERENCES OF APPROACH EMERGED. OUR MAIN OBJECTIVES WERE TO ASCERTAIN, IN THE LIGHT OF THE ASEAN ECONOMIC MINISTERS' MEETING IN MANILA IN EARLY SEPTEMBER, HOW THE AUSTRALIANS SAW THE NEXT STEPS TOWARDS THE IMPLEMENTATION OF ICAP, AND TO PRESS FOR THE RETENTION OF CERTAIN EXISTING BRITISH TRAFFIC RIGHTS TO COUNTERBALANCE THE ADVERSE EFFECTS ON BRITISH AIRWAYS' PROFITS OF THE
MODIFICATIONS TO THE ORIGINAL ICAP CONCEPT WHICH THE
AUSTRALIANS HAD ACCEPTED UNDER ASEAN PRESSURE.
IT IS CLEAR THAT THE PRACTICAL IMPLEMENTATION OF ICAP WILL BE SLOW AND PIECEMEAL, AND THAT THE ORIGINAL CONCEPT IS HAVING
TO BE MODIFIED EXTENSIVELY.
2. SENIOR AUSTRALIAN AND ASEAN OFFICIALS WILL MEET IN AUSTRALIA ON 22 AND 23 OCTOBER. ALTHOUGH SOME MATTERS STILL NEED TO BE RESOLVED, NOTABLY ACCESS FOR SINGAPORE AIRLINES TO SYDNEY AND MELBOURNE ON THE SAME FLIGHT, THE AUSTRALIANS THINK IT LIKELY THAT SUFFICIENT PROGRESS WILL BE MADE FOR CHEAP FARES TO BE INTRODUCED BETWEEN ASEAN POINTS AND AUSTRALIA.
THEY WOULD LIKE TO SEE SUCH FARES IN OPERATION IN TIME FOR
THE CHRISTMAS PEAK SEASON. THE INTRODUCTION OF THESE FARES
WOULD TAKE MUCH OF THE HEAT OUT OF AUSTRALIAN-ASEAN! RELATIONS.
CONFIDENTIAL
/ 3. AS FAR