TNAG-0780-FCO40-984-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 82

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PRIORITY

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CONFIDENTIAL

CONFIDENTIAL

AMENDED DISTRIBUTIKK34/1

TO PRIORITY FCO TELNO 385 OF 02 AUGUST

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RECEIVED IN REGISTRY NO. 51

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- 7 AUG 1978

DESK OFFICER

INDEX

No.

REGISTRY

PA ¡Action Ten

& the

جه

INFO PRIORITY HONG KONG (GOVERNOR AND BCARFE), WELLINGTON, DELHI, SINGAPORE, KUALA LUMPUR, JAKARTA, BANGKOK, WASHINGTON

459

INFO SAVING MANILA, BAHRAIN, PARIS, BONN, ROME, THE HAGUE, VIENNA, BELGRADE, JOHANNESBURG, ATHENS, OTTAWA

YOUR TELNO 384: UK/AUSTRALIAN AIR SERVICES DISCUSSIONS

1. DISCUSSIONS OPENED ON MORNING OF 31 JULY. THE AUSTRALIAM TEAM IS AGAIN LED BY ROWLAND BUT THERE IS STRONGER REPRESENTATION FROM DEPARTMENT OF FOREIGN AFFAIRS. THE ATMOSPHERE IS CORDIAL AND AT A DINNER LAST EVENING GIVEN BY HALTON HE EXPRESSED WARM APPRECIATION THAT WE HAD BEEN ABLE TO RESUME DISCUSSIONS WITH THEM AT THIS TIME.

2. AUSTRALIAN MINISTERS ARE UNDER VERY STRONG PRESSURE FROM THE PUBLIC AND THE MEDIA TO MAKE SOME EARLY AND POSITIVE STATEMENT ABOUT NEW LOW FARES, ALSO THE AUSTRALIANS ARE DUE TO MEET THE AMERICANS FOR AIR SERVICE TALKS IN WASHINGTON ON 28 AUGUST. THE AUSTRALIANS EXPECT TO EXPLAIN THEIR PROPOSALS TO THE AMERICANS AND THAT MEANS THEY WILL INEVITABLY LEAK. ROWLAND SAID THAT FOR THESE REASONS MR NIXON IS VERY ANXIOUS TO BRING THE PROPOSALS OUT INTO THE OPEN AT THE VERY EARLIEST, AND HAS IT IN MIND TO TABLE THE REPORT OF THE ICAP REVIEW IN THE HOUSE TOGETHER WITH A POLICY STATEMENT AS SOON AS THE HOUSE RE-ASSEMBLES IN MID-AUGUST. BUT BEFORE HE DOES SO HE WANTS TO BE AS SURE AS POSSIBLE WHERE HE

STANDS WITH US.

3. ROWLAND THEREFORE SOUGHT ELUCIDATION OF OUR WRITTEN STATEMENT (YOUR TELNO 371) BUT ROGERS DECLINED TO BE DRAWN. REFERRING TO A~ RECENT PRESS REPORT IN WHICH MR NIXON HAD BEEN REPORTED AS TALKING OF CONCLUDING NEGOTIATIONS WITH THE UK BEFORE APPROACHING THE MID- POINT COUNTRIES, ROGERS SAID THAT WE COULD NOT EXPECT TO QUOTE CONCLUDE UNQUOTE DISCUSSIONS AT THIS ROUND OF TALKS. HE EXPECTED THERE TO BE A NEED FOR FURTHER MEETINGS WITH THE AUSTRALIANS INTERSPERSED WITH MEETINGS WITH NID-POINT COUNTRIES BEFORE THE MATTER WAS BROUGHT TO A FINAL CONCLUSION. NEITHER WE NOR, HE THOUGHT, THE AUSTRALIANS COULD TAKE FINAL DECISIONS UNTIL THE REACTIONS OF MID-POINT COUNTRIES WERE KNOWN AND ANY CONSTRUCTIVE SUGGESTIONS THEY MIGHT MAKE HAD BEEN TAKEN INTO ACCOUNT

CONFIDENTIAL

/4. THE EFFECTS