GR 709
CONFIDENTIAL
DESK BY FCO 1212832
CONFIDENTIAL
HKK 184/!.
FM SINGAPORE 121986Z OCT
TO İMMEDIATE FCO
/ NO.
A
15 OCT 1979
TELNO 376 OF 12 OCT 79
Sea (514
INFO ROUTINE CANBERRA WELLINGTON KUALA LUMPUR BANGKOK MANILA
JAKARTA GOVERNOR HONG YONG BCARFE HONG KONG.
AIR SERVICES.
1. I TOOK ROBERTS AND STABLES (DOT) AND BCARFE TO CALL ON SIM KEE BOON, SECRETARY MINISTRY OF COʻMUNICATIONS, THIS MORNING.
WE HAD A GENERAL REVIEW OF CURRENT ISSUES IN A RELAXED ATMOSPHERE, ALTHOUGH SIM WAS PERHAPS A LITTLE MORE CONCERNED TO OBTAIN
INFORMATION THAN TO IMPART IT.
2. THE MAIN SUBJECT OF DISCUSSION WAS PROGRESS TOWARDS THE
IMPLEMENTATION OF ICAP AND FUTURE PROSPECTS, SIM SHARED OUR VIEW THAT THE FORTHCOMING MEETING OF SENIOR AUSTRALIAN AND ASEAN OFFICIALS
WAS LIKELY TO LEAD TO THE EARLY INTRODUCTION OF CHEAP FARES ON ASEAN/AUSTRALIA SECTORS. HE ALSO AGREED THAT IT WOULD NOT BE
EASY TO SECURE AGREEMENT BETWEEN ASEAN AND THE VARIOUS EUROPEAN
COUNTRIES INTERESTED IN THE KANGAROO ROUTE. ASEAM HAD NOT YET CONSIDERED HOW THEIR EUROPEAN NEGOTIATIONS MIGHT BE CONDUCTED, ALTHOUGH SIM'S PERSONAL VIEW WAS THAT THEIR BEST COURSE WAS TO
TALK TO THE EUROPEAN GOVERNMENTS INDIVIDUALLY, STARTING WITH THOSE WITH THE LARGEST INTEREST, INCLUDING BRITAIN AND GERMANY. HE LOOKED FOR AUSTRALIAN SUPPORT IN THESE NEGOTIATP NS, BUT WAS
UNCERTAIN HOW THE AUSTRALIANS MIGHT BEST BE INVOLVED.
3. WE SUGGESTED THAT THE PROPOSAL FOR INTERMEDIATE CARRIERS TO HAVE ACCESS TO THE THROUGH APEX FARE WAS INCONSISTENT WITH THE BASIC PRINCIPLES OF CAP, NOT LEAST BECAUSE IT MADE THE PLANNING OF HIGH SEAT FACTORS MORE DIFFICULT. ALTHOUGH WE HAD YET TO
FORMULATE OUR VIEWS IN DETAIL, WE SAW ADVANTAGE IN A SYSTEM WHICH EXCLUDED INTERMEDIATE CARRIERS FROM THE THROUGH APEX, BUT MADE PROVISION, AT A SOMEWHAT HIGHER SURCHARGE THAN THAT NOW INVISAGED, FOR AN APEX FARE WITH STOPOVER IN EACH DIRECTION WITH NO RESTRICTION
AS TO CARRIER.4 IT WAS STOPOVERS RATHER THAN THROUGH JOURNEYS
WHICH WOULD HELP SINGAPORE TOURISM. WHILE SIM SHOWED SOME INTEREST
CONFIDENTIAL
JIN.