TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 29

CONFIDENTIAL

GPS470

IMMEDIATE

CYPHER CAT/A

FM JAKARTA 206804Z

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HKKL 184/3

RECE

INDE

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TO IMMEDIATE DOT TELNO ALLOT 7 OF 20 DECEMBER RFI TO PRIORITY

HONG KONG (GOVERNOR AND BCARFE).

FOR STABLES FROM WILSON.

HONG KONG TELNO 1253 TO LONDON.

1 SPENT DECEMBER 19 IN INFORMAL TETE-A-TETE DISCUSSIONS WITH

RISAKOTTA.

2. HE OPENED BY SAYING THAT, THOUGH WIWEKO HAD WRITTEN TO MINISTER SALIM ON 25 OCTOBER CONVEYING SENSE OF CPA/GARUDA DEAL

ENVISAGED BETWEEN WIWEKO AND BLUCK, ON 17 DECEMBER WIWEKO HAD

INFORMED MINISTER SALIM THAT AIRLINE DEAL WAS OFF. I SAID WE

AND CPA HAD HEARD NOTHING TO THAT EFFECT. RISAKOTTA HAD SOUGHT

EXPLANATION OF WIWEKO'S EMBARRASSING VOLTE FACE AND BELIEVED IT

REFLECTED GARUDA HOPE OF CONCLUDING DEAL WITH JAL (FOR WHICH WIWEKO HAD ALREADY LEFT FOR TOKYO) AIMED AT GETTING ANA/AIR

MANILA CHARTER TRAFFIC BETWEEN TOKYO AND INDONESIA DIVERTED

TO GARUDA. RISAKOTTA HIMSELF SAW NO FUTURE IN THAT IDEA AND

SAID THAT HE, KARDONO AND MINISTER TOURISM ALL CONSIDEREED

GARUDA HAD NO REAL CHOICE BUT TO OPERATE DC13S TO HONG KONG

FROM APRIL 1978. HOWEVER, MINISTER SALIM WOULD NOT AUTHORISE KARDONO OR RISAKOTTA TO PROCEED WITH UK/INDONESIAN NEGOTIATIONS

UNTIL WIWEKO'S LAST MINUTE EMBARGO HAD DEEN LIFTED.

3. RISAKOTTA TOOK SOME REFUGE IN FACT THAT OUR TALKS WERE

SPECIFICALLY INFORMAL BUT WITH APOLOGIES ASKED HOW URGENTLY WE

REQUIRED SETTLEMENT. I REPLIED WE WERE NOT DEMANDEURS IN THIS

MATTER AND HAVING LONG WAITED FOR SETTLEMENT COULD OBVIOUSLY

WAIT YET LONGER. I ADDED THAT SINCE CPA COULD QUICKLY EXTEND

TO JAKARTA THREE MORE TRISTAR SERVICES WHICH CURRENTLY OVER NIGHT AT SINGAPORE (AND SINCE EASING OF RESTRICTIONS ON SINGAPORE/JAKARTA TRAFFIC COULD TAKE QUICK EFFECT), WE DID NOT

CONFIDENTIAL

I HAVE