TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 48

900

CONFIDENTIAL

FM CANBERRA 010700Z DEC

TO IMMEDIATE FCO

TELNO 612 OF 1 DECEMBER

CONFIDENTIAL

HKK 184/1

RECEIVED IN MAY

· 4 DEC1978

DESK OFFICER

INDEX

No

PA

10. 51

A

701

RY

Action Taken

K

INFO HONG KONG (GOVE AND BCARFE), BANGKOKG, KUALA LUMPUR," SINGAPORE, MANILA, PARIS, THE HAGUE, BONN, ROME, BELGRADE, ATHENS

N.T.

YOUR TELNO 477: AUSTRALIA AIR SERVICES

Sed I

1. MR NIXON CALLED ME IN TO DISCUSS PRESENT STATE OF PLAY TODAY. HALTON WAS ALSO PRESENT. HE SAID HE WAS CONCERNED AT THE WAY

THE NEGOTIATIONS BETWEEN UK AND AUSTRALIA WERE GOING. THE PRINCIPLES OF THENEW REGIME WERE AGREED IN JUNE AND AUGUST AND THE AIRLINES HAD ALREADY REACHED TOTAL AGREEMENT ON FARE PROPOSALS. AUSTRALIAN RESOLVE TO STAND UP TOT THE SINGAPOREANS HAD BEEN DEMONSTRATED BY THE SERVING LAST MONTH OF NOTICE TO TERMINATE THE COMMERCIAL AGREEMENT WITH THEM. DISCUSSIONS WERE TO BE HELD WITH SINGAPORE ON 4 DECEMBER. THERE WAS NO DOUBT THAT MALAYSIA, THAILAND AND THE INDONESIANS WERE WITH THE AUSTRALIANS. IT WAS HOPED TO TALK TO THE ASEANS ON 11 DECEMBER BUT THE DATE WAS NOT CERTAIN. DISCUSSIONS WITH THE

PHILIPPINES WERE TO BE HELD ON 18 DECEMBER.

C

2. MR NIXON FELT THAT THE UK WAS SHIFTING ITS GROUND, PARTICULARLY ON SINGAPORE. I REPLIED THAT THERE HAD BEEN NO CHANGE IN OUR POSITION ON MATTERS OF SUBSTANCE. FROM THE BEGINNING THERE HAD BEEN ANXIETY ON OUR PART ABOUT REACTIONS FROM ASEAN COUNTRIES, NOTABLY SINGAPORE. I COMMENTED THAT I HAD REPORTED TO LONDON IN RECENT WEEKS AUSTRALIAN OPTIMISM ON THE PROGRESS OF DISCUSSIONS. THE SLIPPAGE,' I THOUGHT, HAD BEEN IN THE HOLDING OF AUSTRALIAN CONSULTATIONS WITH THIRD COUNTRIES. WE HAD ALREADY EXPLAINED TO MR NIXON'S OFFICIALS YOUR ESTIMATE OF A REALISTIC TIMETABLE. NONE OF THIS SHOULD BE TAKEN TO MEAN THAT WE WOULD NOT CO OUR VERY BEST TO MOVE QUICKLY ON THE BASIS OF AUSTRALIAN AGREEMENTS WITH OTHER COUNTRIES ONCE THESE HAD

BEEN REACHED.

CONFIDENTIAL

13.

1

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