TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 25

and Australia [generates 70%) The Australia UK traffic.

for MAS to plan ahead.

Nevertheless, the Malaysian

reaction could be sharp and is likely to make still

more difficult agreement on Concorde supersonic

overflight of their territorial waters.

(b) ASEAN solidarity and North/South considerations

*

The Australians played down the risk that, irrespective

of their separate air service/tourist interest, the

countries concerned would gang up to block the scheme

by a total refusal to cooperate eg by denying overflying

and landing rights (the ability to overfly Indonesia

is particularly important). They stressed the overriding domestic political importance of low fares

(they estimate that around 10 million Australians have

relatives in the UK) and their belief that third

countries could be brought to recognise the benefits

that could accrue to them under the scheme. They also

argued that the interests in this context of the

individual members of ASEAN are so divergent that

mauitam' ASEAN will not be able to a common position.

The Australians may well turn out to be right but there

is certainly some risk, however, that those most

affected (Singapore) or those that think they stand

to lose (eg Malaysia) will win support against the

scheme by appeals to ASEAN solidarity or North/South

considerations. Mr Lee Kuan Yew has already taken the

line in public: "If the developed world chooses to

bypass the undeveloped parts of the world I can only

cee it accentuatin- the divide (between them)"