CONFIDENTIAL UKEA
conceal the fact that they relish the chance "to get back at" us, after accepting terms that they (but not we) considered unsatis- Tactory for their airline, MAS, to introduce new wide-bodied jets (D010s) on the Kuala Lumpur/London route. They were even less disposed to help British Airways over Concorde, when it emerged that British Airways had contrived a tie-up with Singapore Inter- national Airlines, and it was announced that Concorde's terminal stop would be Singapore thereby creaming off some traffic from Kuala Lumpur.
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8. Donald Hawley has coped manfully with the crisis (an especially cuerous initiation into Malaysian affairs), but it may be admitted that the hand in London has not always been well played. Air Services'negotiations are notoriously difficult, especially where
as in the present case DoT and the FCO do not always see eye
We tried, in the Department, with some success, to ensure that British Airways did not lean too hard on the Malaysians over the DC10 affair, although, in the event, the agreement reached was. likely to enable the Malaysians to out-earn British Airways and CPA by two-to-one on shared routes. The Malaysians, who were accustomed to out-earning by three-to-one were not mollified.
to eye.
9. Certain Malaysian politicians (sometimes egged on by their staffs) have excelled themselves in raking up real or imaginary grievances against us, to conceal their own failures of commission or omission. In the end such a head of steam built up that not even Lord Goronwy-Roberts, during his helpful visit to Kuala Lumpur, could charm Datuk Hussein Onn into allowing the London flights to re-start supersonically, on a trial basis. The latest position is that the Malaysians have accepted a date at the end of May for a review of our Air Services Agreement. It is by no means the case that, on normal criteria, this will benefit them. Nor is it clear whether, during the discussions, the British side may be in a position to offer Malaysians a sweetener" in return for some concession by them over Concorde. There are strong views, in Whitehall, held on both sides of the question. The Department of Trade note, reasonably, that concessions to Malaysia, in order to permit Concorde to operate in ways which it should normally be entitled to do, would be noticed elsewhere, and could lead to many countries' demanding equivalent "douceurs". For the longer term, it has been agreed with DoT that there will be closer FCO involve- ment in air services' negotiations.
THAILAND
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10. David Cole's incumbency concluded with unprecedented testimonials by senior Thais, from the King downwards, to the success of David's almost single-handed efforts to develop Anglo/ Thai relations. The outcome has been especially remarkable, when it is recalled that no British Ministers visited Thailand
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CONFIDENTIAL UKEA
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