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(C) THE AUSTRALIANS CONFIRMED THAT IN GENERAL THEY WOULD HAVE NO OBJECTION TO OUR RETAINING FIFTH FREEDOM RIGHTS
IN RESPECT OF TRAFFIC TRAVELLING ON NORMAL FIRST AND ECONOMY FARES, BUT WOULD WISH TO SEE THEM DISAPPEAR FOR TRAFFIC TRAVELLING ON CHEAP FARES CONFINED TO THIRD/FOURTH FREEDOM CARRIERS.
(D) THE AUSTRALIANS SAW NO OBJECTION, UNDER AN ICAP REGIME,
TO THE COMBINATION OF OWN THIRD/FOURTH FREEDOM RIGHTS, PROVIDED
THAT THIS RESULTED IN NO INCREASE IN CAPACITY.
6. THE AUSTRALIANS WERE CLEARLY CONCERNED THAT AIR SERVICES
DO NOT AGAIN BECOME A MAJOR IRRITANT IN THEIR RELATIONS WITH ASEAN GOVERNMENTS, ALTHOUGH THE DEPARTMENT OF TRANSPORT AT LEAST
FEELS NO OBLIGATION TO MAKE THE FURTHER CONCESSIONS WHICH
ASEAN WILL BE SEEKING AFTER THE IMPLEMENTATION OF ICAP
ALTHOUGH THEY HAVE NOT ABANDONED THE AIM OF INTRODUCING
SINGLE COUPON NORMAL ECONOMY AND FIRST CLASS FARES, THE
AUSTRALIANS DO NOT PROPOSE TO RAISE THIS ISSUE WITH ASEAN
UNTIL THE DUST HAS SETTLED.
7. THE MAIN ISSUES COVERED IN DISCUSSION ARE SET OUT IN AN EXCHANGE OF LETTERS BETWEEN ROWLAND AND ROBERTS, WHICH THE LATTER WILL BRING BACK WITH HIM.
8. IN PRIVATE CONVERSATION WITH ROWLAND, ROBERTS RESTATED OUR LINE ON CHARTERS AND ON CONCORDE. HE ALSO EXPLAINED OUR NEW GATWICK POLICY TO THE GENERAL MANAGER OF QANTAS, AND THE LATTER (WHO MAY HAVE JUST BEEN BEING POLITE) UNDERTOOK TO LOOK AGAIN AT THE RELATIVE ADVANTAGES OF HEATHROW AND GATWICK.
9. AT THE CONCLUSION OF THE TALKS, ROBERTS WAS INVITED TO CALL ON MR NIXON, THE MINISTER FOR TRANSPORT. IN A BRIEF DISCUSSION MR NIXON EMPHASISED THE NEED TO MAINTAIN ADEQUATE CAPACITY ON THE TRUNK ROUTE, WITHOUT WHICH DOMESTIC PRESSURE IN AUSTRALIA FOR GREATER ACCESS FOR THE INTERMEDIATE CARRIERS WOULD INCREASE. ROBERTS SAID THAT NEITHER WE NOR BA SAW ANY PROBLEM, ALTHOUGH THE SOONER THE FINAL SHAPE OF ICAP WAS CLEAR, THE EASIER IT WOULD BE FOR AIRLINES TO PLAN.
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/ MR NIXON
}