TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 230

HCR

K484/.1

CONFIDENTIAL

584

GR 400

PRIORITY

CYPHER CAT A

FM SINGAPORE 170415Z

CONFIDENTIAL

TO PRIORITY FCO TELNO 315 OF 17 OCT 78.

Spa (585

INFO CANBERRA, JAKARTA, KUALA LUMPUR, BANGKOK, HONG KONG (GOVERNOR AND BCARFE), OTTAWA (FOR ROGERS).

CANBERRA TELEGRAMS NOS 487 AND 488 TO F C O

UK/AUSTRALIAN AIR SERVICES

1. PREDICTABLY THERE HAS BEEN STRONG PRESS REACTION TO MR NIXON'S STATEMENT WHICH HAS BEEN LABELLED AS PROTECTIONIST AND HYPOCRITICAL. EDITORIAL IN NEW NATION OF 14 OCTOBER (TEXT IN MIFT) IS TYPICAL.

2.

IN CONVERSATION WITH LOCAL BA MANAGER, SIM KEE BOON (PERMANENT SECRETARY OF THE MINISTRY OF COMMUNICATIONS) SAID THE ICAP CONCEPT WAS ALL WRONG THE AUSTRALIAN GOVERNMENT HAD BEEN BADLY ADVISED, S THERE WAS NOT ENOUGH POTENTIAL TRAFFIC TO MAKE THE CHEAP END- TO-END FLIGHTS VIABLE. BA MUST SEE THIS: SURELY IT WAS IN THEIR LONG-TERM INTERESTS TO MAINTAIN GOOD RELATIONS IN SOUTH EAST ASIA, AND NOT TO RISK ANTAGONISING FRIENDLY GOVERNMENTS. BEFORE RUSHING IN WE SHOULD LOOK AT THE QUOTE ENORMOUS POLITICAL IMPLICATIONS UNQUOTE. IN ANY CASE WE WERE FOOLING NO-ONE IN GETTING THE AUSTRALIANS TO ACT AS A STALKING HORSE.

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135