GAS 530
CONFIDENTIAL
FM D 0 T 091810Z AUG 79
TO IMMEDIATE GOVERNOR HONG KONG
184
UKK REGISTRY MO
KALSIVED
13 AUG 1979
DESK OFFICER
TELEGRAM NUMBER ALLOT 48(SIC) OF 9 AUGUST
AND TO CANBERRA.
UK/AUSTRALIA AIR FARES.
See
FA
3%
JSPD
MAED (3)
FOLLOWING TELECON ELDER (AUSTRALIAN DOT) .STABLES THE FOLLOWING
TELEX HAS BEEN SENT TO CANBERRA VIA HOLMES. PLEASE COMMENT
URGENTLY COPYING YOUR RESPONSE TO DOT CANBERRA THROUGH AUSTRALIAN
HIGH COMMISSION IN HONG KONG :
FOLLOWING FOR ELDER FROM STADLES
ANSWERS TO QUESTIONS RAISED IN YOUR TELECON
1. RETENTION OF IATA TYPE ECONOMY AND FIRST CLASS FARES. WE ARE CONTENT WITH YOUR COMMON RATING PROPOSALS FOR SYD/MEL/BNE
ON WHAT APPEARS TO BE THE CURRENT SYD LEVELS INCREASED BY 7 AND 9
PERCENT. ASSUME THE LEVELS PROPOSED HAVE BEEN AGREED WITH CX AND
QF. AGREE TO WITHDRAWAL OF EXCURSION AND IT FARES. PUZZLED AS TO
WHY YOU WISH TO RETAIN EXISTING GIT FARE UNTIL NOV 30 BUT IF YOU
WISH FOR YOUR OWN REASONS TO RETAIN IT EX-AUSTRALIA WE HAVE NO
OBJECTION TO THIS AND THE INCLUSION OF THE PERCENTAGE INCREASES
FOR FUEL PRICE RISES. SO FAR AS HONG KONG IS CONCERNED WE NEED
TO CONSULT WITH THE HONG KONG GOVERNMENT. PRIMA FACIE WE ARE
OPPOSED TO ITS CONTINUANCE EX-HONG KONG BUT IF ON FURTHER
EXAMINATION THERE SEEMS TO BE A CASE FOR RETENTION WE WOULD WISH
TO APPLY A CUT OFF DATE OF 13 AUG TO PROTECT THOSE PAX WHO BOOKED
BEFORE THAT FROM HAVING TO SUFFER THE 9 PERCENT INCREASE. ALSO
WE WOULD WISH TO GIVE PAX WHO HAVE ALREADY BOOKED THE OPTION TO
TRADE DOWN TO THE NEW GIT FARE WITHOUT PENALTY.
2. PERCENTAGE INCREASE FOR FUEL PRICE RISES. THE FILING AS PUT
TO US BY CX MAKES PROVISION FOR A MIXTURE OF 5 PERCENT AND 7 PERCENT FLUS 9 PERCENT INCREASES. WE ARE PREPARED TO ACCEPT THIS AND ARE NOT NECESSARILY WEDDED TO 7 AS OPPOSED TO 5.
3. OVERRIDE COMMISSION. IF YOU FEEL OBLIGATED TO CONTINUS IT TILL END OCT WE WILL GO ALONG WITH THIS BUT IN VIEW OF FACT THAT CPA HAVE SAID THEY WILL RELUCTANTLY STAND THE COST WE WOULD