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3. MR NIXON ARGUED THAT NOTHING COULD OCCUR AT NEXT WEEK'S MEETING
WITH THE SINGAPOREANS WHICH COULD NOT BE JUDGED NOW. HE SAID HE
WOULD LIKE AN ASSURANCE THAT VERY SOON AFTER THE SINGAPOREAN MEETING
AUSTRALIA AND THE UK COULD TALK ABOUT A DATE OF ANNOUNCEMENT.
HE HAD BEEN WORKING SINCE JUNE ON THE BASIS OF AN ANNOUNCEMENT
BY CHRISTMAS AND HE WANTED TO STICK TO THIS. HIS REASONS FOR
URGENCY WERE THE PUBLIC AND POLITICAL EXPECTATIONS, THE GREAT AND
DAMAGING UNCERTAINTY AT PRESENT UNDER WHICH THE TRAVEL INDUSTRY WAS OPERATING AND THE DESIRABILITY OF GETTING THE REGIME GOING BEFORE
THE HIGH SEASON. BOTH BA AND QANTAS WERE KEEN TO SEE 1 FEBRUARY AS
THE OPERATIVE DATE OF THE NEW ARRANGEMENTS AND THAT WAS THE DATE HE
WISHED TO ANNOUNCE.
4. MR NIXON HAD DISCUSSED THE ISSUES WITH THE PRIME MINISTER AND
MR PEACOCK. ALL WERE DETERMINED TO PRESS AHEAD AND ALL FELT THAT
AUSTRALIA-UK RELATIONS OUGHT TO WEIGH WITH THE UK AT LEAST AS
HEAVILY AS UK-SINGAPOREAN RELATIONS. 1 SAID INDEED THEY DID. MR NIXON SAID HE WOULD BE EXTRAORDINARILY DISAPPOINTED IF THE UK
FOUND SINGAPORE QUOTE TOO HOT UNQUOTE. THE FACT WAS THAT AUSTRALIA
WAS TOTALLY CONFIDENT THAT IT WOULD SOON HAVE FIRM AGREEMENTS WITH A
NUMBER OF OTHER COUNTRIES TO LAUNCH NEW ARRANGEMENTS ON 1FEBRUARY
UNDER PRESSURE HALTON SAID THE COUNTRIES WERE THE USA, SOME ASEAN COUNTRIES (PRESUMABLY MALAYSIA, THILAND AND INDONESIA) AND ONE OR TWO EUROPEAN COUNTRIES. MR NIXON SAID HE WOULD NOT LIKE TO GO AHEAD
WITH AN ANNOUNCEMENT WHICH DID NOT COVER THE MOST IMPORTANT ROUTE OF ALL, THE KANGAROO (ROWLAND TOLD US EARLIER THAT, IF NECESSARY, HIS MINISTER WOULD GO AHEAD ON THAT BASIS).
5. HALTON EXPLAINED THAT IF NO AGREEMENT HAD BEEN REACHED WITH THE SINGAPOREANS SIX MONTHS AFTER THE DATE OF NOTICE OF TERMINATION THEN THERE WOULD BE NO AGREED CAPACITY FOR SIA. AUSTRALIA COULD THEN TAKE AN EXTREMELY HARD LINE OF NECESSARY. CAPACITY CONSULTATIONS WERE REQUIRED WITHIN 60 DAYS OF THE DATE OF NOTICE. IN ANSWER TO A QUESTION HALTON SAID THAT, IF ABSOLUTELY NECESSARY, THE KANGAROO ROUTE COULD BY-PASS SINGAPORE ON THE PERTH-BOMBAY VARIANT BUT HE
CLEARLY DID NOT ENVISAGE THINGS GETTING TO THIS EXTREME.
6. I UNDERTOOK TO REPORT ALL THIS TO YOU. MR NIXON IS PLAINLY SERIOUSLY CONCERNED ABOUT THE TIMING AND ALSO ABOUT THE UK'S ATTITUDE TOWARDS SINGAPORE. WHEREAS I HAD UNDERSTOOD OUR POSITION TO BE SIMPLY THAT WE WERE ATTRACTED BY THE AUSTRALIAN PACKAGE AND TO FAVOUR IT SUBJECT TO THE REACTION TO IT OF SINGAPORE AND THE SOUTH EAST ASIAN COUNTRIES, NIXON AND HALTON PLAINLY CONSIDERED THAT WE HAD IN EFFECT ACCEPTED THE PACKAGE PROVIDED THEY SQUARED THESE COUNTRIES/WHICH
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