TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 79

GRS 260

CONFIDENTIAL

CONFIDENTIAL

HKR 184

* NO.

AN 1970

FM CANBERRA 248630Z JAN 79

TO IMMEDIATE FCO

ПA

TELEGRAM NUMBER 58 OF 24 JANUARY

INFO SINGAPORE KUALA LUMPUR BANGKOK MANILA JAKARTA HONG KONG (FOR GOVERNOR AND BCARFE) WELLINGTON

No

$9

MY TEL NO 55

UK/AUSTRALIA AIR SERVICES DISCUSSIONS

1,

ROGERS' DISCUSSIONS THIS MORNING CENTRED ON STOP-OVER FARES. BA AND QANTAS, AS A CONSEQUENCE OF THEIR DISCUSSIONS YESTERDAY, PRESENTED ALTERNATIVE PROPOSALS FOR STOP-OVER FARES WITH SUPPORTING STATISTICAL DATA. THERE WAS A VERY HELP- FUL DISCUSSION ON THE IMPLICATIONS FOR THE SCHEDULED SERVICES

OF BA AND QANTAS AND THE LIKELY REACTION OF THE INTERMEDIATE COUNTRIES. SOME FURTHER WORK IS BEING DONE BY BA AND QANTAS THIS AFTERNOON ON THE ESTIMATED CONSEQUENCES FOR TOURISM

IN THE ASEAN COUNTRIES OF THE COMBINED EFFECT OF THE ALTERNATIVE STOP-OVER FARES NOW BEING CONSIDERED AND THE

PROPOSED NEW LOW SECTOR FARES. WHEN THIS WORK IS COMPLETED WE HOPE TO BE ABLE TO REACH AGREEMENT ON A PROPOSED NEW STOP-

OVER FARE WHICH WILL GO SOME WAY TOWARDS MEETING THE

CRITICISMS OF THE ASEAN NATIONS ABOUT THE EXCESSIVE

DIFFERENTIAL BETWEEN STOP-OVER AND THROUGH FARES AND WILL ENGINE

IN CONJUNCTION WITH LOWER SECTOR FARES, HAVE A NEUTRAL EFFECT ON TOURISM IN THE ASEAN COUNTRIES, WHILST AT THE SAME TIME SAFEGUARDING THE INTERESTS OF BA AND QANTAS IN THE CARRIAGE OF THROUGH TRAFFIC.

2. THIS AFTERNOON'S DiscussiONS HAVE BEEN CONCERNED WITH

CHARTERS AND WILL BE REPORTED ON SEPARATELY.

TEBBIT

FILES

MAED

SPD

[COPIES

S SENT TO

TO CADIDOT]

COPIES

то

DITRANSPORT

SEAD

HKJGD NEWS D

OID

MR BUTLER MISS BROWN MR MURRAY

CONFIDENTIAL