TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 36

CONFIDENTIAL

OCCASIONS ABOUT THEIR MINISTER?

SUPPORT FOR MR NIXON'S POLICY. THE DEPARTMENT OF TRANSPORT RATHER GENEROUSLY SAY THAT, DESPITE COPIOUS BRIEFING, MR PEACOCK

HAD NOT FULLY GRASPED THE INTRICACIES OF FARE STRUCTURES, ACCESS AND CAPACITIES. MR FRASER, WHO IS IN INDIA, SPOKE STRONGLY IN SUPPORT OF MR NIXON AT THE WEEKEND.

4. ROGERS' TALKS HERE LAST WEEK WENT VERY WELL. ROGERS'S EFFORTS TO

STEER THE DISCUSSIONS IN A DIRECTION OF COMPROMISE WITH THE

SINGAPOREANS WERE FULLY RECIPROCATED, THOUGH OF COURSE IT REMAINS.

TO BE SEEN WHETHER THE PROPOSALS THEY FORMULATED WILL GO FAR

ENOUGH TO SATISFY SINGAPORE. THE PRESS (EXCEPT THE AUSTRALIAN WHICH

HAS SPEAR-HEADED THE ATTACK ON MR NIXON) FAIRLY REPORTED THE

OUTCOME AS REFLECTED IN THE JOINT STATEMENT. THE SYDNEY MORNING

HERALD IN A LEADER TODAY SAID THAT ONE OF THE MOST ENCOURAGING

FEATURES WAS THE AMOUNT OF TIME AND EFFORT DEVOTED TO POSSIBLE WAYS

OF MEETING ASEAN CONCERNS. TODAY'S FINANCIAL REVIEW REPORTS THAT THAI INTERNATIONAL HAS BROKEN RANKS WITH THE THAI GOVERNMENT

OVER THE LATTER'S SUPPORT OF A UNIFIED ASEAN STAND. THE PAPER ALSO

REPORTS THAT THE THAI AIRLINE'S QUOTE BOLD STAND OF SUPPORTING AUSTRALIA'S AIR FARES PROPOSAL, CONTRARY TO ITS GOVERNMENT'S POLICY, IS UNDERSTOOD TO ECHO THE PRIVATE FEEINGS OF MAS AND GARVDA

UNQUOTE. CUTTINGS FOLLOW BY BAG.

5. I WILL CONFIRM AS SOON AS WE KNOW THAT MR PEACOCK HAS REPLIED

TO MOCHTAR AND RAJARATNAM ON THE LINES INDICATED ABOVE,

TEBBIT

FILES

MAED

SPD

SEAD

FED

HKGD

NEWS D

OID

MR.BUTLER

MR. CORTAZZI MISS BROWN MR. MURRAY

[COPIES SENT TO CAD/DOT]

2 CONFIDENTIAL