CONFIDEN MAL

THE

4. THE ASEANS INDICATED THAT THEY HAD NOT DECIDED..WHAT

APPROACHES THEY WOULD MAKE TO EUROPEAN GOVERNMENTS.

REPORT RECORDS THAT THEY UNDERTOOK TO KEEP THE AUSTRALIANS

INFORMED OF THESE CONSULTATIONS ABOUT THE IMPLEMENTATION OF THE PACKAGE SETTLEMENT. THERE WAS NO SUBSTANTIVE

DISCUSSION AT THE MEETING ABOUT THE SIZE OF THE ASEAN QUOTA

ON THE TRUNK ROUTES OR THE STOPOVER SURCHARGE. THE REPORT

NOTED THAT THE DELEGATIONS AGREED THEY WOULD AIM TO HAVE

DISCUSSIONS IN EARLY 1988'' ON THESE ISSUES AND ALSO ON NORMAL, FIRST, ECONOMY AND PROMOTIONAL FARES.

5.

ATTEWELL ASKED WHETHER CPA'S 5TH FREEDOMS ON THE WEST

COAST ROUTE HAD BEEN DISCUSSED. ROWLAND SAID IT WAS THE

INTENTION TO REMOVE 5THS ON LOW FARES BUT THE MALAYSIANS

HAD EXPRESSED THE VIEW THAT 5THS ON HIGHER FARE TYPES

COULD GO ON OPERATING.

6.

ROWLAND REMAINS CONCERNED ABOUT ITALIAN WISH TO HAVE POINT TO POINT EXCURSION FARES AS WELL AS APEX. AUSTRALIA

COULD NOT AGREE TO THIS WITHOUT GOING BACK TO THE ASEANS.

IF ROBERTS HAS ANY FURTHER THOUGHTS ON THIS PROBLEM,

ROWLAND WOULD MUCH WELCOME THEM.

7.

ROWLAND ALSO MENTIONED THAT THE INDIAN HIGH COMMISSIONER

WAS DUE TO SEE HALTON TODAY, PRESUMABLY IN CONNECTION WITH

THE PROBLEM CUTLINED IN PARAGRAPH 4 OF MY TEL NO 556.

8. ALL IN ALL THE MEETING REPRESENTED A USEFUL STEP FORWARD.

GIVEN THEIR PREVIOUS EXPERIENCE WITH THE ASEANS THE AUSTRALIANS

ARE CAUTIOUS BUT THERE IS A GOOD PROSPECT THAT THE LOW ASEAN/AUSTRALIAN FARES WILL BE IN PLACE BY THE BEGINNING OF NEXT YEAR.

?.

FCO PLEASE PASS ADVANCE TO ROBERTS, CAIR, DOT.

TEBBIT

FILES

MARO

SPD

ARGO

COPIES 70

MR

ROBERTS

CAIR

MR

STABLES

DOT

MISS BROWN

COPIES SENT

CADIDOT

2

CONFIDENTAL

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