TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 71

Thailand to Australia would be viable. Although the Australians might

reduce Qantas services to Thailand, they would not want to give the

Thais a monopoly.

got the

10. BA are confident that traffic between London and India could be

carried on turn round services or en route to Hong Kong or Singapore.

We would not want to cut Air India's services to the UK. The total, number of services with traffic rights between India and Australia would

have to be drastically reduced. But there is little traffic on the

route (from 9 to 1 a week) and the Australians may decide to leave it in

the hands of the Indians. They will also be prepared to help the

Indians develop Australian tourism in Inida. India is likely to be

important to the Australians for technical stops.

11. Both the Australians and we agree that Indonesia is likely to be

only marginally affected. She is already concerned to confine air

traffic exchanges to the third and fourth freedoms.

1

12. The Australians took the line that while the Americans would refuse

to implement a scheme on the Pacific route, they, would have no reasons

to object to it on the UK/Australia route.

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13. The Australians intend to negotiate the same kind of agreement [ with some European countries as with us, (probably Netherlands, Yugoslavia, Greece, Italy and FRG), ie resticted to an exchange of end to end rights. Services would have to be reduced probably by up to 50% a week depending on the route. With others (probably France and Austria), if end to end traffic is not enough to justify a service, they

will terminate their agreements. They believe that European opposition

will not be strong enough to block the scheme.

14. At a separate meeting to consider the political effect of the Australian proposals on third countries, the Australians played down the risk that, irrespective of their separate air services/tourist

interests, the countries concerned would gang up to block the scheme by a total refusal to cooperate eg by denying overflying and landing

rights. They stressed the overriding domestic political importance of

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