CONFIDENTIAL
not be able to continue to delay the announcement of new fares
to Hong Kong if an ASEAN/Australia settlement is unduly delayed,
but wish to wait at least until after the next meeting of ASEAN
Economic Ministers, scheduled for 25 July.
3.
Although we would be glad to see the early introduction
of cheaper fares between Hong Kong and Australia, neither we
nor the DOT understand why CPA claim they are losing traffic under
present arrangements or why the 3 August date should be so critical.
ICAP fares have not yet been introduced between Australian and
ASEAN countries so Hong Kong are at no disadvantage in this
respect. It is true that CPA will introduce 3 x 8747s a week- but
instead of 8 x 8707s which is in fact a slight drop in capacity.
4.
Hong Kong also seem unnecessarily worried about Qantas
frequencies.
Qantas at present fly 4 x B747s to Hong Kong per
week, two of them via Manila. When ICAP is fully introduced
they have agreed to drop this to 3 direct services per week to
Hong Kong. Clearly Qantas cannot sensibly make this change until
agreement has been reached between Australia and the Philippines
on direct end to end services under the ICAP system.
5.
The DOT are preparing a draft telegram to find out exactly
what Hong Kong are worried about, but do not want to press the
Australians again until after the 25 July ASEAN/Australia meeting,
unless Hong Kong can produce evidence of damage from this
CONFIDENTIAL
/further