$
CONFIDENTIAL
eps 700
CONFIDENTIAL
DESKBY 130O3OZ
HKK!84/1
325
FROM FCO 1217OOZ
16 JDA 29
PA
TO IMMEDIATE HONG KONG (GOVERNOR/BCARFE)
TELEGRAM NUMBER 527 OF 12 JULY
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187.2 k
INFO KUALA LUMPUR
Sed
330
314
YOUR TELNO 972, OUR TELNO 191 TO KUALA LUMPUR AND KUALA LUMPUR TELS NOS 252 AND 254, .UK/MALAYSIA AIR SERVICES: FOLLOWING FROM MAED
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1. DURING HIS RECENT VISIT TO MALAYSIA, THE SECRETARY OF STATE AGREED THAT THE NEXT ROUND OF AIR SERVICES DISCUSSIONS SHOULD BE AT
MINISTERIAL LEVEL, THEY WILL START. IN LONDON ON 17 JULY, AND THE PARLIAMENTARY UNDER SECRETARY OF STATE FOR TRADE (MR TEBBIT)
WILL LEAD ON OUR SIDE.
2. OUR AGREEMENT TO MINISTERIAL TALKS WILL HAVE RAISED MALAYSIAN,
EXPECTATIONS THAT A DEAL, OR AT LEAST THE BASIS OF A DEAL, WILL BE FORTHCOMING, AND THE CONSEQUENT DISAPPOINTMENT IF IT IS NOT WILL BE THAT MUCH GREATER. AT HIS MEETING WITH LORD CARRINGTON, HUSSEIN ONN
STRESSED THAT IF IN THE NEGOTIATIONS WE DID NOT SHOW CONSIDERATION
FOR MALAYSIAN INTERESTS, ANTI-BRITISH GROUPS WOULD EXPLOIT THIS TO
THE DETRIMENT OF OUR OVERALL RELATIONS. BEARING IN MIND THE
FORTHCOMING COMMONWEALTH PRIME MINISTERS CONFERENCE AND THE
DIFFICULTIES OVER THE VIETNAM REFUGEES WHICH SEVERELY TROUBLE THE MALAYSIANS AS WELL AS OURSELVES IN HONG KONG PARTICULARLY, THERE
WOULD BE ADVANTAGES IN GETTING THE DIFFICULTIES WITH THE MALAYSIANS
OVER AIR SERVICES OUT OF THE WAY.
3. WE HAVE THEREFORE GIVEN CAREFUL CONSIDERATION TO THE MINIMUM WE. THINK THE MALAYSIANS WILL SETTLE FOR AND THE EXTENT TO WHICH WE ARE PREPARED TO PAY THE PRICE DEMANDED IN THE WIDER INTERESTS OF UK/
MALAYSIA RELATIONSHIPS.
4. ON THE TRUNK ROUTE, THE PROGRESSION OF MAS CAPACITY FROM 2 X DC10 NOW TO 4 BY OCTOBER 1980, PLUS THE MINOR ADJUSTMENTS ON TRAFFIC RIGHTS DISCUSSED DURING THE MAY/JUNE MEETING SHOULD SATISFY THEIR IMMEDIATE ASPIRATIONS. SIMILARLY, THE MOUNTING A DAILY A300
SERVICE FROM EARLY 1990 WITH PROGRESSION TO ANOTH WEEKLY SERVICE (SUBJECT TO DEMAND) BY APRIL 1931 SHOULD SATISFY THEIR THIRD/FOURTH
CONFIDENTIAL
| FREEDOM.