TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 40

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CO FCO DESKBY 291108Z

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CONFIDENTIAL

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FM SINGAPORE 290855Z JAN 79

TO IMMEDIATE FCO

Hick 1994/1

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TELEGRAM NUMBER 69 OF 29 JANUARY

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ADVANCE COPY

AND TO IMMEDIATE CANBERRA, PRIORITY KUALA LUMPUR, JAKARTA, MANILA, BANGKOK, HONG KONG (COV AND BCARFE), WELLINGTON, CANBERRA TELEGRAM NO 72

UK/AUSTRALIA AIR SERVICES

MY AUSTRALIAN COLLEAGUE HAS GIVEN ME FOLLOWING REPORT OF THE CONVERSATION BETWEEN MR PEACOCK AND MR RAJARATNAM WHEN FORMER STOPPED OVER IN SINGAPORE ON 27 JANUARY ON HIS WAY BACK TO AUSTRALIA FROM PARIS. MEETING TOOK PLACE IN RAJARATNAM'S HOUSE BETWEEN 2200HRS AND 2345 HRS.

2. MR PEACOCK EXPLAINED THAT HE HAD NO AUTHORITY TO SPEAK FOR THE AUSTRALIAN GOVERNMENT: HIS INTERVENTION WAS PERSONAL AND UNILATERAL, HIS DECISION TO SEEK A TALK WITH RAJARATNAM HAD BEEN TRIGGERED BY THE DRAFT REPLY PROPOSED TO DR MACHTAR, THE TERMS AND TONES OF WHICH HE DISLIKED. HE FELT IT TOOK SUFFICIENT ACCOUNT OF THE RISK AUSTRALIA FACED OF DAMAGING ITS INTERESTS IN THE ASEAN AREA: THE STRENGTHENING OF ASEAN WAS A PRIMARY OBJECTIVE OF AUSTRALIAN POLICY SO FAR AS HIS MINISTRY WAS CONCERNED.

3.

RAJARATNAM ARGUED THAT THE ISSUE WAS NO LONGER A BILATERAL SINGAPORE/AUSTRALIAN ONE, NOR WAS IT SIMPLY A CIVIL AVIATION ISSUE ANY MORE. THE SEVERAL ASEAN CIVIL AVIATION AUTHORITIES MIGHT HAVE DIFFERING VIEWS ABOUT THE IMPLICATIONS FOR THEM OF THE AUSTRALIAN PROPOSALS, BUT THE ISSUES HAD NOW BECOME POLITICISED AT THE ASEAN LEVDW, AND THE ASEAN COUNTRIES WERE RESOLVED TO MAINTAIN THEIR UNITY, THIS WAS THE MORE IMPORTANT FOR THEM IN THE LIGHT OF RECENT DEVELOPMENTS IN INDO-CHINA, HE REPEATED HIS CONTENTION THAT THE AUSTRALIAN PROPOSALS REPRESENTED AN, INSIDIOUS FOR OF PROTECTIONISM WHICH, IP DEVELOPED, WOULD SHUT OUT THE AIRLINES OF ASEAN AND OTHER DEVELOPING COUNTRIES FROM FREE COMPETITION FOR INTERNATIONAL CIVIL AVIATION TRAFFIC. HE HANDED