Аз the week progressed we succeeded in wearing the Australians down so that by close of play Thursday the elements of a deal were in place although the talks broke
due to Australian resistance to our proposal for a separated all-cargo provision as well as their reluctance to accept our proposed cap on frequency/capacity to Europe and their continued insistence on a guaranteed minimum daily to the UK with full traffic rights post June 1997 (Buckingham told me that he had gathered through "diplomatic channels" that HMG was relaxed about access to London: I assume this was a misunderstanding on his part but will be grateful for your comments). Although they shaded their request on Kai Tak slots, the demand was essentially the same and remained unacceptable.
reconvene
LL was at this point I suggested that we part and at some unspecified time in the future by which time our respective positions and priorities might have changed. In making the suggestion I made it clear that if necessary Hong Kong would be prepared to live with the status gue until the transfer of sovereignty with all that would imply for Qantas' existing rights. I ended by adding that I would be available to meet the following day (Friday) if any fresh thoughts occurred to the Australian
team.
0920
Buckingham telephoned me the following morning at somewhat earlier than expected. He explained that he had discussed the outcome of the meeting with his Minister (Kim Beazley, who was in Hong Kong for a Telecommunications conference) and with his Permanent Secretary, Graham Evans, who had in turn spoken to the CEO of Qantas John Ward. It seems that all three felt that a final effort should be made to reach agreement. Accordingly, we met in restricted section during the late morning Buckingham and Cooper (QF) together with Jessie Yip, McArthur (CPA) and myself. We succeeded in resolving the outstanding issues. I made a concession on all-cargo: for his part Buckingham accepted our proposals on the three issues which the previous day he had held so dear.
AS explained in telno 3095 time ran out on us and, since Buckingham had a "political" engagement in Australia over the weekend which he could not break, he was unable to stay to complete the paper work (more to the point he had not brought a lawyer with him!).
in
I suggested that we re-convene in early November Canberra to dot the i's and cross the t's on the CMU and to deal with the two ASA Articles outstanding. Much to my surprise he pushed for an earlier date, hence we will now be meeting on 30 October
will be on leave until 27 October).
(I