TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 95

Pict

DO HONG KONG

GRS 300

CONFIDENTIAL

FM DTI 191430Z JAN 79

HKK 184/!.

RECEIVED 19 LACHTEN HE.

22 JAN 1979

PA

Action

TRY

alten

fu

OFFICER

NO DISINBUING

TO IMMEDIATE HONG KONG (FOR GOVERNOR)

TELNO ALLOT 13 OF 19 JANUARY

INFO CANBERRA

Акет

S.P.D.

чаето

UK/AUSTRALIA AIR SERVICES DISCUSSIONS: YOUR TELNO 90.

UNFORTUNATELY TELEGRAM UNDER REFERENCE DELAYED IN TRANSMISSION TO

DOT. OUR PRELIMINARY COMMENTS ARE:-

HKG

1. IT IS NOT CLEAR WHETHER THE FARES PROPOSED IN PARA 3 OF TELEGRAM UNDER REFERENCE HAVE BEEN AGREED WITH QANTAS. AT THE CANBERRA TALKS IN AUGUST A COMPREHENSIVE FARE STRUCTURE FOR SYD/MEL WAS SET OUT AT ANNEX TO THE CMD. ASIDE FROM THE QUESTION OF APPLYING SOME SEASONAL DIFFERENTIAL TO THE PROPOSED APEX RETURN FARE (PARA 6 OF CANBERRA TEL 387) WE HAD UNDERSTOOD THAT, APART FROM POSSIBLE MINOR ADJUSTMENTS, THIS FARE STRUCTURE WAS. ACCEPTABLE To CPA AND QANTAS.

2. A WEIGHTED AVERAGE OF THE APEX FARE NOW PROPOSED ON THE ASSUMP- TION THAT THE PEAK FARE WILL APPLY FOR 12 WEEKS IN THE YEAR (PARA 6 OF TEL 387) COMES OUT AT AROUND AUS DOLLARS 581...THIS COMPARES WITH THE AUS DOLLARS 527 IN THE CANBERRA PROPOSALS.

3. WHAT IS PERHAPS MORE SIGNIFICANT IS THAT THE P AND OP PROPOSALS OF DOLLARS 706 AND DOLLARS 544 COMPARES WITH CORRESPONDING LEVELS OF DOLLARS 602 AND DOLLARS 464 FOR SYD/MEL - SIN WHICH THE AUSTRAL- IANS HAVE PROPOSED TO THE SINGAPOREANS. IF THERE IS TO BE THIS DIFFERENTIAL, WHICH MAY WELL BE JUSTIFIED IN TERMS OF THE ECONOMICS OF THE TWO ROUTES, IT IS GOING TO BE DIFFICULT TO HAVE THE SAME LEVEL OF APEX STOP-OVER FARE SYD-LON OVER HONG KONG AS OVER SIN (SEE PARA 8 OF TEL 20 OF 11 JAN TO SINGAPORE).

4. WE SHALL NEED TO DISCUSS THIS WITH LATHAM AND DEWAR BEFORE MAKING PROPOSALS TO THE AUSTRALIANS AND WE WOULD ADDITIONALLY WELCOM IN CANBERRA ANY COMMENTS FROM YOU.

NAMN