RESTRICTED

3)

046741

MDLIAN 0725

RESTRICTED

FM JAKARTA

TO PRIORITY HONG KONG

TELNO MISC 40

OF 04030OZ APRIL 91

AND TO PRIORITY FCO, DEPT OF TRANSPORT, DTI

FOR WAKELING (ESB/HKG DEPT)

FIELDER (IAD) DEPT OF TRANSPORT

ELTON COT2) DTI

COOK (SEAD) AND AMD FCO

FROM MALCOLM

Spoke to MJ Byrd

we leading.

броне

Амо

HAL181/22

OUR TELNO MISC 33 TO HONG KONG (NOT TO ALL)

HONG KONG SERVICES/INDONESIA AIR SERVICES

for 414.

1. I AM FAXING SEPARATELY (TO WAKELING AND COOK) AN INDONESIAN COUNTER DRAFT FOR AIR SERVICES AGREEMENT, HANDED TO ME, ON 2 APRIL, BY EDWARD SILOOY, HEAD, AIR TRANSPORT AGREEMENT, DIRECTORATE GENERAL OF AIR COMMUNICATIONS (DGAC).

2. AT ARTICLE 1, PARAGRAPH 4 OF THE INDONESIAN DRAFT, INDONESIA IS DEFINED AS FOLLOWS:

QUOTE THE TERM 'TERRITORY' MEANS IN THE CASE OF INDONESIA, THE TERRITORY OF THE REPUBLIC OF INDONESIA AS DEFINED IN IT LAWS AND THE ADJACENT AREAS OVER WHICH THE REPUBLIC OF INDONESIA HAS SOVEREIGNTY, SOVEREIGN RIGHTS OR JURISDICTION IN ACCORDANCE WITH THE INTERNATIONAL LAW AND IN THE CASE OF

D

UNQUOTE.

3. THIS DEFINITION OF TERRITORY APPEARS LIKELY TO CAUSE THE SAME DIFFICULTIES WE ARE EXPERIENCING OVER UK/INDONESIA BILATERAL AGREEMENTS ON DOUBLE TAXATION AND COPYRIGHT IE. AGREEMENT CANNOT BE REACHED ON THE TERRITORIAL DEFINITION OF INDONESIA WITHOUT CONCEDING RECOGNITION TO EAST TIMOR OR REFERENCE TO THE UN LAW OF THE SEA.

4. SILOOY IS AWARE INDONESIA'S DEFINITION OF TERRITORY MAY WELL CAUSE US PROBLEMS. HE SAID IT WAS INSERTED AT THE INSISTENCE OF THE DEPARTMENT OF FOREIGN AFFAIRS (DEPLU). DGAC HOWEVER WANTED A NEW HONG KONG AGREEMENT AND WOULD HAVE NO PROBLEM IN SUBSTITUTING THE PREAMBLE OF THE AIR TRANSPORT AGREEMENT WITH AN EXCHANGE OF LETTERS.

1

PAGE RESTRICTED

Share This Page