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FM FCO

TO ROUTINE HONG KONG

TELNO 1257

OF 051515Z JULY 91

HKC 18125

044537 MDLOAN 6758

New EMOLOAN

HK/Aus Air services.

INFO ROUTINE CANBERRA, UKREP JLG HONG KONG, PEKING

-90/HKC184/3

•90/HKC 184/3 (15

CANBERRA TELNO 898 OF 18 OCTOBER 1990:

SERVICES

1.

UK/AUSTRALIA AIR

IN THE COURSE OF A CALL BY EVANS (PERMANENT SECRETARY DTC) ON SUNDERLAND (DEPUTY SECRETARY DTP) ON 3 JULY TO DISCUSS

PORTS AND FREIGHT, THE QUESTION FOR AIR SERVICES WAS RAISED.

2. EVANS INDICATED THAT THE AUSTRALIAN POSITION ON ASA SEPARATION HAD NOW BECOME LESS RIGID THAN REPORTED IN TUR AND

SUGGESTED THAT NEGOTIATION OF A HONG KONG/AUSTRALIA ASA COULD

PROCEED SEPARATELY FROM DISCUSSION OF THE MAIN BILATERAL

ISSUES: ALTHOUGH THERE WAS STILL A NEED TO NEGOTIATE A SATISFACTORY PACKAGE OF RIGHTS THE AUSTRALIANS WOULD BE

FLEXIBLE ABOUT THE 1974 CMU WHICH THEY HAD PREVIOUSLY INSISTED

SHOULD BE HONOURED TO THE FULL.

3. SUNDERLAND WELCOMED THIS UNEXPECTED NEWS AND SAID THAT WE

WOULD BE CONSIDERING HOW TO TAKE THINGS FORWARD ALTHOUGH EVANS' REMARKS WOULD NOT BE TREATED AS A FORMAL INITIATIVE. 4. EVANS ALSO MENTIONED THAT HE HAD STOPPED OVER IN HONG

KONG EN ROUTE TO THE UK. THERE HE HAD HAD DISCUSSIONS WITH

OFFICIALS IN ESB AND WITH CPA TO DISCUSS ASA SEPARATION. GRATEFUL IF YOU CAN ADD ANYTHING TO THE FOREGOING AS A RESULT OF THOSE DISCUSSIONS.

HURD

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