TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 124

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to work out but will have implications for British as well as

Australian relations with the third countries concerned going

beyond the air services field. It is clear that Singapore and

probably Malaysia will be hostile. The Australians expect US

to refuse to implement the scheme for traffic between Australia

and the United States. It is possible that the US might go

further and try to object to its implementation on the US/Australia

route, even though it is no direct concern of theirs.

Recommendation

4.

The Australians would like some reaction from HMG to their

ideas. This is natural, in that British agreement is virtually

essential for the scheme to succeed. The DOT at official level

and BA both appear to be in favour of the scheme in principle.

But in view of the widespread implications going beyond the field

of air services, I recommend that we should give the Australians

a very cautious reaction, and I submit a draft letter to Mr Dell

accordingly.

CC

PS/Lord Goronwy-

Roberts

PS/PUS

Mr Cortazzi

Mr Murray

SWPD

SEAD

HK&GD ✔

SAD.

16 June 1978

2

MR Morland

MR Morland

Maritime, Aviation and Environment

Department

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