TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 109

DEPARTMENT OF TRADE

1 VICTORIA STREET LONDON SWIH OET

The Rt Hon Frank Judd MP

From the Secretary of State

Minister of State

Foreign and Commonwealth Office

Downing Street

London SW1A 2AL

Der fail

1

Telephone 01-215 7877

Ps Puss Cas Ps/Secretary Mackey Mr Browning M Bryant Mkemmis M Stables

M Rogers

26 July 1978

Thank you for your letter of 24 July, which you and I discussed yesterday.

I do not think a continuation of these negotiations will give third countries the impression that we are, as. you put it, ganging up against them. It is natural enough that the Australian Government should wish to be sure of their ground with us, before they broach their proposals with other countries which are less directly concerned. Australian Ministers have themselves referred to "negotiations" with us and this implies that we are taking some persuading. Nor is there any reason to suppose that the Australians will refuse to give us anything more without a greater degree of commitment from our side. This is a point however which can only be determined by putting it to the test.

Although the agreed record is slightly indeterminate in saying that the two delegations will meet again "as soon as possible", it was clearly understood by all concerned including your own officials that this meant immediately after the Australian proposals had been submitted to Ministers here. I gather that the Australian Government have made several statements based on this understanding and I am sure we should do great damage to our relations with Australia, not only in the air services field but also more widely, if we were to go back on it now.

With your concurrence, I have therefore instructed my officials to forward the agreed statement to the Australians and to go ahead with arrangements for an immediate meeting. In practice, I expect that there will need to be further meetings with the Australians, inter- spersed with meetings with the mid-point countries, before this matter is brought to a conclusion. I confirm that, as you and I discussed, we shall not enter into any final agreement with the

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