TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 38

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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ON AN EQUAL BASIS WITH RICHER AIRLINES MUST BE THE NEXT TARGETS. IT WOULD BE A VERY SERIOUS ERROR TO THINK THAT THIS "GANG-UPS OF THE RICH COUNTRIES AGAINST.DEVELOPING COUNTRIES WOULD REMAIN UNNOTICED FOR LONG OR THAT THE CRIPPLING CONSEQUENCIES WOULD NOT BE FELT BY THOSE WHO MAY NOW MISS THE REAL INTENTIONS OF ICAP SPEARHEADED BY AUSTRALIA. EVERY MOVE THAT AUSTRALIA HAS MADE TO FORCE ICAP DOWN OUR THROATS, THE ABSENCE OF THE LITTLE COURTESIES ACCORDED IN HARD BARGAINING BETWEEN FRIENDLY COUNTRIES AND THE INVITATION TO ASEAN TO **NEGOTIATE** AFTER FIRST DECLARING THAT ICAP WOULD NEVERTHELESS BE PUT INTO EFFECT BY FEB 1, ARE TACTICS NORMALLY EMPLOYED WHEN THE OTHER SIDE HAS TO BE BROUGHT TO ITS KNEES AND CONCEDE DEFEAT?'.

3. MR RAJARATNAM SAYS THAT IT IS NECESSARY FOR HIM TO CLEAR ONE MISUNDERSTANDING ABOUT THE STRENGTH OF ASEAN FEELING AND SOLIDARITY. **! KNOW** HE WRITES, "THAT INDIVIDUAL ASEAN PARTNERS HAVE BEEN APPROACHED WITH ATTRACTIVE INDUCEMENTS TO BREAK RANKS ASSESSMENTS HAVE BEEN CIRCULATED BY WAY OF GOSSIP THAT WHEN IT COMES TO THE CRUNCH ASEAN SOLIDARITY WOULD CRUMBLE. YOU (MR PEACCCK) HAVE BEEN DEALING WITH ASEAN LONG ENOUGH TO KNOW. THAT SOFT LANGUAGE DOES NOT NECESSARILY MEAN WEAK SPINES...THE ASEAN ECONOMIC AND NOW THE ASEAN FOREIGN MINISTERS HAVE MADE KNOWN THEIR FIRM VIEWS IN A NICE WAY, BUT SOME OF YOUR COLLEAGUES WHO HAVE NOT KNOWN ASEAN LEADERS AS INTIMATELY AS YOU MIGHT HAVE MISTAKEN THIS POLITENESS FOR WEAKNESS**.

4. MR RAJARATHAM CHALLENGES MR NIXON'S CLAIM THAT ICAP WOULD ENCOURAGE A GREATER FLOW OF TOURISTS TO ASEAN, THE AUSTRALIAN PROPOSAL TO CUT SIA CAPACITY BY FORTY PERCENT DOES NOT TALLY WITH THAT, AND ALREADY SIA FUTURE 300KINGS SYDNEY-LONDON HAVE DROPPED THIRTY PER CENT SINCE THE ANNOUNCEMENT OF ICAP. MR RAJARATNAM WARNS THAT UNLESS AUSTRALIA'S IGAP, AS ELABORATED BY YOUR OFFICIALS, IS SUBSTANTIALLY MODIFIED, ASEAN/AUSTRALIAN RELATIONS COULD, AFTER FEBRUARY 1, TAKE A COURSE WHICH NEITHER OF US WOULD WANT THEM TO DO BUT IN WHICH BOTH OF US WOULD HAVE TO PERSIST AND HE URGES MR PEACOCK TO IMPRESS UPON HIS COLLEAGUES THAT THE REPRESENTATIONS OF THE ASEAN ECONOMIC AND FOREIGN

MINISTERS ARE NOT TO BE LIGHTLY DISMISSED.

5. MR PEACOCK IS ALSO REPORTED AS SAYING BEFORE RESUMING HIS

FLIGHT TO AUSTRALIA ON 27 JAN THAT HE WAS AWARE THAT AUSTRALIA

SHOULD BE SEEKING A COMPROMISE ON THE ISSUE TO ENSURE THAT THE

CLOSE RELATIONS BETWEEN AUSTRALIA AND ASEAN CONTINUE.

6. A UPI REPORT OF THE STATEMENT MADE FOLLOWING THE U/AUSTRALIA

TALKS IN CANBERRA IS ALSO PUBLISHED AMO ENINASİR. ES CivỀU ra qUG.

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