GPS 235A
CONFIDENTIAL
CONFIDENTIAL
FM FCC 181703Z AUG 1979
TO PRIORITY MANILA
TELEGRAM NUMBER 187 OF 13 AUGUST
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184/1
HELEDA ESSTAY MB.
13 AUG 1979
13/8
tur Ter
INFO PRIORITY CANBERRA, SINGAPORE, HONG KONG (GOVERNOR AND BOARFE), KUALA LUMPUR, JAKARTA, BANGKOK AND WELLINGTON.
YOUR TELNO 359: HONG KONG/AUSTRALIA AIR FARES.
WE HOPE YOU CAN AVOID BECOMING INVOLVED IN CONTROVERSY.
IF YOU OR OTHER POSTS ARE APPROACHED YOU SHOULD EXPLAIN THAT THE
BRITISH GOVERNMENT DISCUSSED AND SUBSTANTIALLY AGREED A NEW HONG
KONG/AUSTRALIA FARES PACKAGE WITH AUSTRALIA AS LONG AGO AS JANUARY
BUT HELD BACK ITS IMPLEMENTATION IN CONSULTATION WITH AUSTRALIA
SO AS TO GIVE TIME FOR THE ASEAN STATES TO AGREE COMPLEMENTARY LOW
FARES BETWEEN THEMSELVES AND AUSTRALIA. AT A MEETING OF AIRLINES CONCERNED, INCLUDING CPA AND QANTAS, IN KUALA LUMPUR IN JUNE A FAIR
MEASURE OF AGREEMENT APPEARED TO HAVE BEEN REACHED ON THE LEVELS
OF NEW LOW REGIONAL FARES AND THE CONDITIONS THAT SHOULD ATTACH TO,
THEM, WE HAD HOPED THAT AGREEMENT WOULD DY NOW HAVE BEEN REACHED
BETWEEN ASEAN AND AUSTRALIA ON THE IMPLEMENTATION OF THESE FARES
BUT THERE IS NO SIGN OF FURTHER PROGRESS.
2, THE HONG KONG GOVERNMENT HAS COME UNDER VERY STRONG CRITICISM FROM CONSUMER INTERESTS IN HONG KONG ABOUT THE DELAY.
}
AS THE BRITISH PUBLIC ALREADY BENEFIT FROM CHEAPER FARES TO AUSTRALIA
ON THE TRUNK ROUTE IT IS DIFFICULT FOR THE BRITISH GOVERNMENT TO
CONTINUE TO ALLOW THE HONG KONG PUBLIC TO BE DISADVANTAGED BY THE
MAINTENANCE OF FARES AT A LEVEL HIGHER THAN THE AIRLINES THEMSELVES
HAVE AGREED,
THE DATE OF IMPLEMENTATION OF THE NEW FARES HAS BEEN DECIDED IN CON-
SULTATION WITH THE AUSTRALIANS AND THE HONG KONG GOVERNMENT,
CARRINGTON
FILES
MAED
HKIAD
MISS BROWN. MR CORTAZZ)
SPD
MR MURRAY
SEAD
FED
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MR. STABLES, CAIR DOT
CONFIDENTIAL