TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 123

CYPHER CAT/A

FM JAKARTA 100530Z

CONFIDENTIAL

Hd. MAED (PRESTON

Hd. READ Ad. HRAGD

Au. Burrows

Mr. Muway CAD / DOT,

HKK 18411

137973

DECK OFFICEY

Shell mexito. (2)

See Too

TO PRIORITY FCO TELNO 60 OF 10 FEBRUARY AND RFI PRIORITY TO HONG KONG (FOR GOVERNOR AND BCARFE).

1R:

Action Taken

g

108.

>

83

YOUR TELNO 29: AIR SERVICES

1. I HAD AN INFORMAL DRINK WITH RISAKOTTA ON 9 FEBRUARY AND

SPOKE AS INSTRUCTED.

2. RISAKOTTA SAID THIS WAS THE FIRST HE HAD HEARD OF SUCH AN OFFER BY WIWEKO, AND HE WONDERED WHETHER IT WAS GENUINE. I ASKED WHETHER, IF IT WAS, THE IDEA WOULD BE LIKELY TO FIND FAVOUR WITH THE INDONESIAN GOVERNMENT. RISAKOTTA REPLIED THAT THIS WOULD HAVE

TO BE DISCUSSED, BUT HE THOUGHT THAT THE INDONESIAN GOVERNMENT WOULD LOOK FOR SOMETHING IN RETURN, EG NEW RIGHTS HONG KONG/

TAIPEI. HE SUGGESTED THAT THE BEST WAY TO PUT MATTERS IN TRAIN

WOULD BE FOR US TO ASK FOR FORMAL NEGOTIATIONS. THIS WOULD EN ABLE

HIM TO ASK HIS MINISTER FOR INSTRUCTIONS, AND THE MINISTER WOULD THEN SMOKE OUT WIWEKO.

.3. 1 EXPLAINED THAT WE DID NOT WANT TO GET INVOLVED IN FORMAL

NEGOTIATIONS UNLESS WE HAD SOME INDICATION THAT WIWEKO'S IDEAS

WERE GENUINE AND LIKELY TO BE NEGOTIABLE. RISAKOTTA SAID HE

ACCEPTED THIS. HE THEREFORE SUGGESTED THAT I SHOULD WRITE HIM A LETTER SAYING THAT BCARFE WOULD LIKE TO SEE HIM IN JAKARTA FOR

AN INFORMAL DISCUSSION OF CPA'S RIGHTS. THIS WOULD BE ENOUGH FOR

HIM TO ASK HIS MINISTER FOR INSTRUCTIONS, WHICH WOULD INVOLVE A

CLARIFICATION OF WIWEKO'S POSITION.

4. RISAKOTTA HAS NOW LEFT JAKARTA FOR SOUTH ASIA, THE MIDDLE EAST AND EUROPE (NOT BRITAIN). HE IS DUE BACK ABOUT 23 FEBRUARY. HE SAID THAT IF MY LETTER COULD BE WAITING FOR HIM ON HIS RETURN, IT SHOULD BE POSSIBLE FOR BCARFE TO COME HERE ABOUT THE FIRST WEEK

CF MARCH. HE SAW NO REASON WHY THESE DISCUSSIONS NEED AWAIT THE

PRESIDENTIAL ELECTION AND MINISTERIAL RESHUFFLE AT THE END OF

MARCH.