TNAG-0782-FCO40-986-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 27

GRS 750

CONFIDENTIAL-

HACK 184/1

REXIVES

CONFIDENTIAL.

DESKBY 151000Z

FM CANBERRA 150845Z DEC 78

TO MEDIATE FCO

TELEGRAM NUMBER 657 OF 15 DECEMBER

O OFFICER

INTMEN

RE

Y

Lukon

140

INFO SINGAPORT, KUALA LUMPUR, BANGKOK, JAKARTA, MANILA AND HONG KONG (FOR GOV AND BCARFE)

NIL YOUR TELNO 627: UK/AUSTRALIA AIR SERVICES.

INSTRUCTED IN YOUR

ON PARA 9A

1. FIRST SECRETARY (ECONOMIC) SPOKE TO HALTON AS TUR, WHO LATER REPLIED WITH HIS CONSIDERED VIEWS

DEPARTMENT OF TRANSPORT'S UNDERSTANDING WAS THAT SIA HAD

SUGGESTED BILATERAL TALKS WITH QF NOT IN LONDON. HALTON SAW GREAT DIFFICULTIES ABOUT TRIPARTITE AIRLINE DISCUSSIONS IN LONDON NOW. IT

WAS CLEARLY REASONABLE FOR BA AND SIA TO DISCUSS LDN/SING AND FOR BA AND QR TO DISCUSS LDN/SYD AND WITHOUT QUESTION QF/SIA

OUGHT TO TALK BUT THE TIMING COULD NOT YET BE SEEN WITH

CERTAINTY. THE AUSTRALIANS HAD STRONG DOUBTS ABOUT THE TACTICAL

MERITS, NOT ONLY FOR OF BUT ALSO FOR BA, IN GETTING INTO A TRI- PARTITE DISCUSSION NOW. THE DEPARTMENT OF TRANSPORT HAD TALKED TO

TOAKLEY ABOUT THIS. HALTON SUGGESTED DEPT OF TRADE SHOULD TALK TO

TOAKLEY AGAIN, WHO IS AUTHORIZED TO AGREE TO TRIPARTITE AIRLINE

TALKS PROVIDED THAT HE IS CONVINCED THERE ARE GOOD ARGUMENTS FOR

DOING SO:COLAN IF HE THINKS CASE IS MARGINAL HE WOULD HAVE TO CONSULT

CANBERRA BY PHONE.

2. ON PARAS 9B AND 9C HALTON COMMENTED THAT THE AUSTRALIANS WERE · CONVINCED THAT CALCULATIONS ON POINT TO POINT LONDON/SYDNEY FARES

WERE FAIR AND HAD PRODUCED THE APPROPRIATE RESULT. THE TRANSITIONAL

EXCURSION FARES LONDON/SYDNEY, WITH ONE STOPOVER IN EACH DIRECTION,"

WERE PUT TO DEPT OF TRANSPORT ON THE BASIS THAT BA HAD LOOKED VERY

CAREFULLY AT LONDON/SINGAPORE AND THAT THE FARES HAD SOUND FINANC I AL

JUSTIFICATION. THE DEPARTMENT OF TRANSPORT DO NOT HAVE DATA FOR

LDN/SING AND WOULD WANT TO KNOW MORE PRECISELY WHAT THE BASIS FOR

ANY ALTERNATIVE MIGHT BE. CLOSING THE GAP MIGHT WELL HAVE DAMAGING

FINANCIAL CONSEQUENCES FOR BOTH BA AND OF. THE DEPT OF

TRANSPORT'S FIGURES SUPPORTED AN APEX STOPOVER OF A DOLLARS 1,000 (RELYING IN PART ON BA'S FIGURES FMWDTKUYKGDP Z JJPQORE) AND THE

FIGURES FOR APEX IN THE A DOLLARS 568-998 RANGE WERE EQUALLY

SOLID. THE CHEAPEST FARES DESIGNEDLY CAME TO AS CLOSE AS POSSIBLE TO

CONFIDENTIAL

/CHARTER