TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 123

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UK/AUSTRALIA AIR SERVICES

Introduction

Is $13 of the fap" an adequate

The Hong Kong Vel today's dutritonkins ?

340

preliminar reflectivi

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one 1

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At talks this week in London between Australian and UK

officials (led by Mr Rogers, DOT) the Australians presented far reaching proposals for revising the basis of air services between

Australia and all countries with services to Australia. These have

been approved as a basis for negotiation by Australian Ministers.

The details are set out in FCO telegram No 302 to Canberra and

in the attached preliminary paper done in the DOT with FCO col-

laboration, but no FCO commitment.

Argument

2.

Although the Australians propose to negotiate this scheme

with all their air services partners, the trunk route to the UK

is crucial. The main effect would be to restrict traffic on

this trunk route to BA and Quantas. Airlines of countries lying

along the route at present carry much of the traffic all the way

from Australia to the UK. Under the new scheme these would be

severely limited. Cutting out those intermediate airlines would be necessary to fill up the BA and Quantas flights and so allow

them to keep fares down and still make a profit.

3.

The likely consequences of this scheme are complicated

CONFIDENTIAL

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