1
8
Implications for third countries
(a) Air services/Tourism
(b)
Annex A describes the effect on air services/tourist interests of third countries. Australia would probably have to re-negotiate her Air Service Agreements with the UK, Singapore, Malaysia, Thailand, India and a number of European countries. The country most seriously affected would be Singapore. We would have to reduce SIA's air services between Singapore and London from 7 to probably 4-5 a week; Australia would have to cut them on the Singapore/Australia route from 13 to about 5 a week. Singapore's tourist trade would suffer immediately from fewer short stops by passengers en route Australia-Europe in both directions. However, it is part of the overall Australian intention to agree lower fares for the Australian-Singapore routes and as a consequence of this they expect that more Australians would spend longer holidays in Singapore. Calculations done by the Australians on that assumption suggest that Singapore's net loss on tourism from Australia could be as low as £2m per year. The comparable loss on tourism from Europe is not quantifiable but it could be significant. Of the other countries, in air service terms, Malaysia should actually improve her present position, largely at the expense of Singapore, but she will need convincing of this. Her first reaction based on the immediately apparent loss resulting from MAS's exclusion from the through Australia-London traffic is likely to be sharp; and this could prejudice our chances, at least for the time being, of getting agreement on Concorde supersonic overflight of their territorial waters. She will probably see the Australian scheme as a deliberate attempt to inhibit her ambitions for MAS's expansion which she explained to a UK delegation in London in May. We hope however that when the full implications of the proposals are explained to her that she will realise the benefits, both real and potential. Singaporean dissatisfaction might lead them (however unfairly) to vent their disappointment on the United Kingdom. Bilateral relations are close and cordial at the highest level and Singapore is our best market in South East Asia. The Singapore Government have been helpful to us in commercial (non-aviation) matters. Any temporary loss of goodwill could affect the local prospects for British business. Similar commercial considerations would apply in respect of Malaysia if her reaction was adverse.
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 ar
Autralians hav relativer ir
ܠ
No comments yet.
Private notes are available after approval.