TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 37

1

PP MANILA (ACTIONED)

PP BANGKOK....

PP GOV HONG KONG

PP BCARFE HONG KONG

PP WELLINGTON

GR 884

UNCLASSIFIED

DESKBY 3039007 FCO

ADVANCE COTA 2 Bytter

FM SINGAPORE 300308Z JAN

TO IMMEDIATE FCO

TELNO 61 OF 30 JAN 79

Mr Williajan

IMMEDIATE

Otel MIED

SPD

# K G D

PA

HKK 1814/1

10.

अप्रै

SEND 18052 tee News

+ CADIDOT

RC

AND TO IMMEDIATE CANBERRA, KUALA LUMPUR, PRIORITY JAKARTA, MANILA, BANGKOK, GOV HONG KONG, BCARFE HONG KONG AND WELLINGTON.

MY TELNO 60. UK/AUSTRALIA AIR SERVICES.

(Files}

した

PR RAJARATNAM'S LETTER TO MR PEACOCK WAS RELEASED LAST NIGHT AND IS CARRIED AS MAIN NEWS ITEM IN STRAITS TIMES UNDER HAEDLINE **RAJA SLAMS AUSSIE POLICY***

2. MR RAJARATNAM REFERS TO AN EARLIER LETTER FROM MR PEACOCK IN WHICH HE HAD SAID THAT THE AUSTRALIAN CIVIL AVIATION EXPERTS WOULD APPROACH THE ASEAN/AUSTRALIA TALES IN CANBERRA ON 8-11 JAN IN THE SPIRIT OF CAREFULLY AND SYMPATHETICALLY CONSIDERING ASEAN REACTIONS. AFTER REPEATING THAT ASEAN WELCOMED CHEAP FARES SUBJECT TO OPEN COMPETITION, HE ARGUES THAT IN THE LIGHT OF THE ELADORATION OF THE ICAP POLICY GIVEN AT CANBERRA, IT IS CLEAR THAT IT IS INTENDED TO DO MORE THAN PROVIDE CHEAP FARES. "THE INSISTENCE BY AUSTRALIAN OFFICIALS ON THE INCOMPATIBLE MECHANISM OF DUOPOLY TO ACHIEVE THIS PUZZLED US AT FIRST BUT NOW WE KNOW WHY, IT IS NOT. AT ALL INCOMPATIBLE IF THE

REAL OBJECTIVE IS TO KNOCK THE AIRLINES OF DEVELOPING COUNTRIES SUCH AS ASEAN FROM THE FIELD OF INTERNATIONAL AVIATION'. THE AIRLINES OF THE ASEAN COUNTRIES WOULD BE THE FIRST TARGETS, BUT IF THE AUSTRALIANS SUCCEEDED **WITH THE ACTIVE OR TACIT SUPPORT OF OTHER DEVELOPED COUNTRIES THE AIRLINES OF OTHER THIRD WORLD COUNTRIES WHICH SHOWED A CAPACITY TO COMPETE ON AN EQUAL BASIS WITH RICHER AIRLINES MUST BE THE NEXT TARGETS.

IT WOULD BE A VERY SERIOUS ERROR TO THINK THAT THIS 'GAND-UP OF THE RICH CAUMZOFER AINST DURACIL SANDERO MANIAZD 176