TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 137

CONFIDENTIAL

5.

If anything, the joint paper tends to underestimate the

sharpness with which the mid-point countries are likely to react

and the risk of their ganging up to block the scheme. In parti-

cular SEAD believe that the Malaysian reaction will be much

sharper than is reflected in these papers and that any prospect

of achieving agreement on supersonic over-flight for Concorde

would be ruled out for a length of time which cannot now be speci-

fied. This confirms the need,.recognised in the joint paper, to

proceed cautiously.

6.

We have told the Australians that we should have liked them

to approach other countries affected, notably India, Malaysia,

Singapore and Thailand before coming to any conclusion ourselves.

The Australians took the line that without an indication of our

agreement in principle they would not be prepared to approach other

Governments about the proposal. We undertook to consult Ministers.

7.

The draft reply to the Australians is designed to give the

Australians a little, but not to prejudice our ability to retreat

if the reaction of third countries is tough and in particular if

there are signs of their ganging up against the scheme.

The Timing of the Next Round of Talks with the Australians

8. At the end of the last round it was agreed that there should

be talks again as soon as possible. DOT officials, and especially

Mr George Rogers, who led the talks with the Australians and appears

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