=> Mr Guess
RESTRICTED
HKC181/22
(23)
003275
MDLIAN 1262
RESTRICTED
FM JAKARTA
TO ROUTINE FCO
TELNO 410
OF 25043OZ JUNE 91
TOP COPY
Q DIST ?
38
INFO ROUTINE DEPT OF TRANSPORT, HONG KONG, DTI, INLAND REVENUE
HONG KONG/INDONESIA AIR SERVICES AGREEMENT
SUMMARY
1.
AGREEMENT ON OPERATIVE TEXT AND CMU: TERRITORIAL CLAUSE REMAINS TO BE NEGOTIATED IN JAKARTA. SIGNATURE SET FOR 9/10 SEPTEMBER IN
HONG
KONG.
DETAIL
2. NEGOTIATIONS TOOK PLACE IN BALI ON 20/21 JUNE. A DRAFT TEXT AND A CONFIDENTIAL MEMORANDUM OF UNDERSTANDING (CMU) ON ROUTING AND TRAFFIC RIGHTS FOR CATHAY PACIFIC AND GARUDA, WERE AGREED BY BOTH SIDES.
3. HOWEVER, AS EXPECTED, NO AGREEMENT WAS REACHEDON THE TERRITORIAL CLAUSE. THE INDONESIAN DELEGATION HAD INSTRUCTIONS FROM THE DFA NOT TO NEGOTIATE. THE LEADER OF THE INDONESIAN DELEGATION, CAHYO ADI (DIRECTOR AIR TRANSPORT, DIRECTORATE GENERAL OF AIR COMMUNICATIONS (DGAC)), SAID HE WOULD PURSUE THIS QUESTION WITH THE DFA. HE WAS CONFIDENT A SOLUTION WOULD BE FOUND AND QUICKLY. (COMMENT: GARUDA HAVE PURCHASED NEW 747-400 AIRCRAFT WHICH THEY WISH TO PUT INTO SERVICE WITHOUT DELAY. THEY ARE UNDER PRESSURE FROM GOI TO NEGOTIATE NEW ROUTES TO JUSTIFY THEIR PURCHASE, AND TO INCREASE TOURIST ARRIVALS TO INDONESIA. DFA WILL NOW BE UNDER PRESSURE, FROM GARUDA AND THE MINISTRY OF COMMUNICATIONS, TO REACH AN AGREEMENT WITH US ON DEFINITION OF TERRITORY.)
4 IT WAS AGREED TO RECONVENE IN HONG KONG ON 9/10 SEPTEMBNER TO FINALISE AND FORMALLY SIGN TEXT AND CMU .
5. SEE OUR IFT FOR A REPORT OF PARALLEL NEGOTIATIONS ON
TERRITORIAL
CLAUSES.
CARRICK
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