TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 105

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CONFIDENTIAL

DSR 11C

concern to the Australian Government.

Australian success

will depend on the degree to which ASEAN gang together in

resisting the Australian plan. The Australians have

admitted as much but claim that the interests in this

context of the individual member of ASEAN are so divergent

that ASEAN will not be able to maintain a common position.

The Australians also hope that Australian tourism in S E

Asia, envouraged by new law fares, can be so built up as

to fill the gap left by the disappearance of the stop-over

traffic.

The likelihood of Australian success in introducing the

new arrangement.

18. There can be no question of turning down the Aus-

tralian proposals at this stage. We, like them, have an

interest in lower fares. The other options would

apparently equally mean cutting out SEA.

CONFIDENTIAL

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D 107991 400,000 7/76 904 953

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