TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 108

WITH THEM, AT LEAST IN THE IMMEDIATE FUTURE. THIS SEEMS TO BE AN IMMEDIATE QUID PRO QUO FOR SINGAPORE'S BACKING-DOWN FROM THE

1 NOVEMBER DEADLINE FOR CUTS ON MAS SERVICES PREVIOUSLY PROPOZD BY SINGAPORE. FURTHERMORE BOTH ASEAN PAPERS WERE DRAFTED BY

A COMMITTEE CHAIRED BY HAJI MOHD NOOR, SECRETARY GENERAL OF THE MINISTRY OF TRANSPORT, WHO TOLD ME THAT THE MALAYSIANS WERE TAKING COGNIZANCE OF SINGAPORE'S UNHAPPINESS IN THE ASEAN CONTEXT. HOWEVER NEITHER HE NOR MANICKA (WHOM I WAS SEEING ON THIS OCCASION) SUGGESTED THAT MALAYSIA HERSELF WAS UPSET BY THE PROPOSALS.

•

3. THE MALAYSIANS ARE LIKELY TO REMAIN SILENT UNTIL THEY CAN

BETTER APPRAISE THE EFFECT OF THE PROPOSALS ON THEIR OWN TRUNK

SERVICES. CERTAINLY THEY WILL BE BETTER OFF IF QANTAS PULL OUT

AND WILL LOSE LESS TRAFFIC TO SIA THROUGH SINGAPORE IF SIA'S

TRUNK ROUTE FREQUENCIES ARE REDUCED. BUT THEY HAVE TO CALCULATE . WHETHER THEIR POTENTIAL INCREASED 3RD/4TH FREEDOM OPPORTUNITIES

WILL COMPENSATE FOR THE LOSS OF THE LUCRATIVE 6TH FREEDOM TRAFFIC NOW CARRIED TO AND FROM AUSTRALIA. SHAW OF BA TOLD ME IN JULY THAT ACCORDING TO THEIR CALCULATIONS MALAYSIA WOULD BE BETTER OFF.

4. AS SEEN FROM HERE, MR NIXON MAY BE A LITTLE OPTIMISTIC IN THINKING THAT A DEFINITIVE REPLY CAN BE EXPECTED SOON.

CCN PARA 1 LINE FOUR OFFICIAL WITH LITTLE RPT

LITTLE ETC ....

HAWLEY

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IMMEDIATE