TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 6

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THE ASEAN CRITICISM OF AUSTRALIA'S AIR FARES POLICY PUTS THE FEDERAL MINISTER FOR TRANSPORT MR NIXON IN A DIFFICULT

POSITION.

THEY HAVE ACCUSED HIM OF PROTECTING QANTAS, BUT HE SAYS HIS ONLY AIM IS TO INTRODUCE LOWER AIR FARES.

YET HE PRIVATELY ADMITS HIS DILEMMA ON THE ROUTES AFFECTING ASEAN COUNTRIES. IF THE FARE HE BRINGS IN IS TOO LOW IT WILL SIPHON OFF TRAFFIC FROM THE PRESENT LUCRATIVE LONDON FLIGHTS AND THREATENED THE WHOLE STRUCTURE OF THE QANTAS/BRITISH AIRWAYS LOWER FARES WHICH RELY ON THE ECONOMICS OF MASS TRANSPORT.

TEBBIT

END OF REPORT

.

FILES:

MAED

SEAD

SPD

H K & G D

OID NEWS D

MR BUTLER MISS BROWN MR MURRAY

COFIES TO: MR BRYANT)

MR RUMBELOW)

2

CAD/DOT

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