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4. YOU SHOULD ALSO TAKE THE OPPORTUNITY TO STRESS THAT THE UNCERTAINTY CAUSED BY LONG DELAY IN SETTLEMENT OF ICAP PROPOSALS IS MAKING IT DIFFICULT FOR BA TO PLAN THEIR FLIGHT SCHEDULES ON A SETTLED BASIS VERY FAR AHEAD. THERE ARE A LARGE NUMBER OF OUTSTANDING POINTS OF DETAIL BETWEEN US AND THE AUSTRALA FANS WHICH WE WOULD LIKE TO CLEAR UP BUT WHICH WILL PRESUMABLY HAVE TO WAIT UNTIL FURTHER PROGRESS IS MADE WITH THE ASEAN COUNTRIES. FOR EXAMPLE, THE CONCESSIONS OFFERED BY AUSTRALIANS TO ASEAN IN THE KUALA LUMPUR PACKAGE WOULD RESULT IN APPRECIABLE LOSS OF REVENUE FOR BA. SINCE THESE CONCESSIONS WENT BEYOND WHAT WE HAD AGREED WITH THE AUSTRALIANS, WE WISH TO DISCUSS VARIOUS IDEAS OF OBTAINING COMPENSATING REVENUE FOR BA. ALSO, WE UNDERSTAND THAT QANTAS ARE NOW MAKING PROPOSALS AT AIRLINE LEVEL FOR THE END-TO-END ON DEMAND FARES ENVISAGED IN THE ICAP PROPOSALS. BA AND WE WOULD PE RELUCTANT TO TAKE THESE FURTHER FORWARD BEFORE THERE IS DEFINITE PROGRESS TOWARDS IMPLEMENTATION OF THE ICAP REGIME.
5. DO THE AUSTRALIANS NOW ENVISAGE SEPARATE AGREEMENTS AT GOVERNMENT LEVEL WITH THE ASEAN COUNTRIES WHO APPEAR TO ACCEPT THE KUALA LUMPUR PACKAGE, THEREBY ISOLATING SINGAPORE? WHAT TIMETABLE ARE THEY PLANNING?
CARRINGTON
FILES
MAED
HK & GD
SPD
MISS BROWN
COPIES TO:
MR T STABLES CAIR/DOT
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