TNAG-0781-FCO40-985-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 81

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6. WE DO NOT FIND THE REASONS FOR THE ACCELERATED INTRODUCTION VERY

VINCING. MORE IMPORTANTLY, WITH THE AUSTRALIANS NOW MEETING THE SINGAPOREANS ON 4 DEC AND THEN ON 11 DEC THE ASEAN COUNTRIES UN BLOC, IT IS NOT GOING TO BE POSSIBLE FOR US, WITH THE OTHER NEGOTIATING COMMITMENTS WE HAVE, TO CARRY OUT OUR CONSULTATIONS WITH THE S E ASIAN COUNTRIES BEFORE EARLY JANUARY. SO FAR AS WE ARE CONCERNED THEREFORE A MORE REALISTIC TIMETABLE WOULD BE (ASSUMING THINGS GO REASONABLY WELL)

(1) OUR DISCUSSIONS WITH S E ASIANS COUNTRIES EARLY TO MIDDLE JANUARY (2) FINAL DISCUSSIONS WITH AUSTRALIA LATE JAN TO BE FOLLOWED BY (3) AN ANNOUNCEMENT IN LATE JAN/EARLY FEB BY THE UK AND AUSTRALIAN GOVTS ABOUT THE NEW AIR SERVICES REGIME TO COME INTO FORCE ON 1

APRIL 79.

7. WE THINK IT WOULD BE DIFFICULT FOR UK MINISTERS TO ACCEPT COMMITMENT TO THE AUSTRALIAN PROPOSALS UNTIL WE HAVE COMPLETED OUR CONSULTATIONS. BRITISH AGREEMENT TO A 1 FEB INTRODUCTION OF THE NEW LOW FARES FOR THE MAIN TRUNK ROUTE WOULD BE TAKEN BY OTHERS CONCERNED TO MEAN A FINAL COMMITMENT BY HMG TO THE FULL ICAP SCHEME, EVEN THOUGH THE REST OF THE SCHEME INCLUDING CAPACITY CUTS, WOULD NOT TAKE PLACE UNTIL LATER. WE WOULD BE GRATEFUL FOR MORE BACKGROUND ABOUT THE PRESSURES ON MR NIXON AND FOR YOUR OWN ASSESSMENT OF THE CONSEQUENCES IN AUSTRALIA OF A DELAY OF ANY ANNOUNCEMENT UNTIL END-JANUARY AND (ASSUMING NO FURTHER HITCHES) INTRODUCTION OF NEW FARES ON 1 APRIL.

8. FOR JAKARTA AND DELHI ONLY.

GRATEFUL FOR REPORT ON AUSTRALIAN DISCUSSIONS WITH INDONESIA AND INDIA RESPECTIVELY AND IN PARTICULAR FOR CONFIRMATION THAT AGREEMENT IN PRINCIPLE WAS REACHED WITH INDONESIANS AT GOVERNMENT AS OPPOSED TO AIRLINE LEVEL.

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MR CORTAZZI

MISS BROWN

MR MURRAY

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