TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 146

GR 620

CONFIDENTIAL

145

IMMEDIATE

CYPHER/CAT A

HKK184/1..

REINA

FM HONG KONG 1604417 INDEX

2 JUN 1978

CONFIDENTIA

DESKBY 160800Z

soused

F

339

$ 16/6

with MACD See relicut

диви The susuure did not go up.:

OFFICER

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Action Takes

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will include

reference

HK dault

TO IMMEDIATE F.C.O TELNO.738 OF 16 JUNE 78,

INFO HONG KONG GOVT OFFICE LONDON, CANBERRA, WELLINGTON,

SINGAPORE, KUALA LUMPUR, BANGKOK, JAKARTA, MANILA, TOKYO.

333

YOUR TELNO.462: U.K/AUSTRALIA AIR SERVICES.

See Buo

1. YOU ASK FOR OUR PRELIMINARY REACTIONS TO THE AUSTRALIAN

PROPOSALS CONTAINED IN YOUR TELNO.302 TO CANBERRA.

(40)

2. WE BELIEVE THAT THE LOW APEX FARE BETWEEN U.K AND AUSTRALIA

INTRODUCED IN APRIL 1977 DIVERTED AUSTRALIAN TOURISTS AWAY FROM

HONG KONG. THE BULK FARES NOW PROPOSED, IN PARTICULAR THE CONDITION WHICH PRECLUDES PASSENGER STOPOVERS, ARE LIKELY

HAVE A MUCH GREATER EFFECT ON OUR TOURIST TRADE.

3. THE OBJECTIVE OF THE AUSTRALIAN PROPOSALS IS, OF COURSE, TO

CAPTURE THE AUSTRALIA-U.K MARKET AND ELIMINATE 6TH FREEDOM COMPETITION. BRITISH AIRWAYS HAS BEEN DESCRIBED AS THE LARGEST

6TH FREEDOM CARRIER, IF THIS IS SO, PROPOSALS OF THIS SORT

COULD BACK-FIRE ON LONGER TERM U.K INTERESTS.

4. THE CONCERN PREVIOUSLY EXPRESSED BY THE AUSTRALIANS ABOUT

THE QUESTION OF PASSENGER COMFORT ON LONG JOURNEYS WHICH WOULD BE INVOLVED IN A 3RD/4TH FREEDOM REGIME (PARA. 14 OF CANBERRA

ALSO TELNO.185 OF 3 MARCH TO FCO), APPEARS TO HAVE DIMINISHED. LITTLE CONSIDERATION APPEARS TO HAVE BEEN GIVEN TO THE REQUIREMENTS

OF OTHER THAN VFR PASSENGERS.

CONFIDENTIAL

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