7
Mr Murray
HACK 184/1... PA.
CONFIDENTIAL
Was this deares
us ?
Mr wille
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16/bar Michave-no- I had
heard it won being drafted
but assumed the Herrland, who
ICAP FARES BETWEEN AUSTRALIA AND HONG KONG: drafted personalen, womed
HONK KONG TELNO 955
clear with now. I had bear and to halien that a v. Stay hui ayant the
Australiam moned he recommended to LITE 1. You reacted strongly to Hong Kong telno 955 and asked akut.
307
for action to meet Hong Kong's concern.
We have chivvied
This is
"arsappointing.
the DOT accordingly; but it seems to us and them that while u Austrations
promicul to
new James by hurt the end of
the Australians are being a bit unreasonable, Hong Kong' is mihoduce the crying before there is any immediate risk of it being and would lose nothing by a delay till soon after the ASEAN, Magie Australian Economic Ministers meeting on 25 July. with ASEAN
after them last meetrig
2.
Puikiam Agreement on Hong Kong/Australia fares under the ICAP 16.7
(mcluding Hong Kong) system was reached in late January but both sides agreed at that
time that an immediate announcement would be regarded as provo
cative by ASEAN. We have since asked the Australians several
times whether the new fares could go ahead but each time there
has been another Australian/ASEAN meeting in prospect and the
Australians have been unwilling to risk souring the atmosphere
by announcing agreement with Hong Kong. We do not entirely agree
withthe Australians that an early announcement would be damaging
politically. It might indeed do some good by putting pressure
on the ASEAN countries to settle with Australia at last and
would not in the meantime damage their airline interests. The
Australians have now warned the ASEAN countries that they will
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