TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 90

CONFIDENTIAL

PA

ST

GR 303

IMMEDIATE

DESKBY 252300Z CANBERRA, 260120Z HONGKONG, 26130ØZ WASHINGTON, 260333Z DELHI, 252100Z AUCKLAND, 260600

BAHRAIN, B666CAZ, KUWAIT.

HKK184/.....

RECSO

2 6 JUN 1978

CYPHER CAT 'A'

See (358) (367) (570)

FM FCO 241483Z

PA

ction Teken

No

CONFIDENTIAL

DESKBY 252300Z CANBERRA, 260100Z HONGKONG, 261300Z WASHINGTON, 260330Z DELHI, 252100Z AUCKLAND, 2606037 BAHRAIN, 250602Z KUWAIT. TO IMMEDIATE CANBERRA TELNO 325 OF 24 JUNE AND TO HONGKONG (FOR GOVERNOR AND BCARFE), DELHI, WASHINGTON, AUCKLAND (WELLINGTON PSE PASS), BAHRAIN, KUWAIT,

INFO PRIORITY OTTAWA, PARIS, BONN, ROME, ATHENS, VIENNA, BERNE, THE HAGUE, MADRID, BELGRADE, JOHANNESBURG.

A. MY TELNO 322

AUSTRALIA/UNITED KINGDOM AIR SERVICES TALKS

1. DISCUSSIONS FINISHED AFTER MIDNIGHT 23/24 JUNE.

2. TALKS WERE CONDUCTED IN A CORDIAL AND OPEN ATMOSPHERE THROUGH- OUT. THEY WERE REGARDED BY BOTH SIDES NOT AS A NEGOTIATION BUT AS A JOINT EFFORT TO REDUCE FARES AND THUS FACILITATE TRAVEL, ESPECIALLY BY THE LESS WELL-OFF SECTION OF THE COMMUNITY - CONSISTENT WITH COMMERCIALLY VIABLE AIRLINE OPERATIONS.

3. WE AGREED THAT THE AUSTRALIAN PROPOSALS OFFERED BEST PROSPECTS OF MEETING THIS OBJECTIVE. OTHER ALTERNATIVES (EG INTRODUCTION OF CHARTERS AND CHARTER-COMPETITIVE FARES ON SCHEDULED SERVICES) WERE LIKELY TO BE LESS EFFECIVE AND WERE SEEN AS HAVING SIMILAR, AND IN SOME RESPECTS WORSE, IMPLICATIONS FOR THE AIRLINES AND TOURIST INTERESTS OF THIRD COUNTRIES.

4. THE AUSTRALIANS SHOWED THEMSELVES FLEXIBLE IN OVERCOMING PROBLEMS AND ALTHOUGH SEVERAL POINTS OF SUBSTANCE REMAIN TO BE SETTLED, SOLUTIONS ARE IN SIGHT. MOST DIFFICULT PROBLEM

/REMAINS

CONFIDENTIAL

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