TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 129

145

GRS 400

CONFIDENTIAL

CONFIDENTIAL

FM BCARFE HONG KONG 210610Z FEB 79

TO PRIORITY DO T

TELEGRAM NUMBER ALLOT 9 OF 21 FEBRUARY

AND TO PRIORITY JAKARTA

HRK 184/1

KLOVED

YNC. 51

22 FEB 1979

INDEX

No

77.2

RE

FOR STABLES FROM WILSON.

FCO TELNO 167 TO HONG KONG,

1. I NUDERSTAND FROM LATHAM THAT HONG KONG WILL BE ADVISING

THEIR PREFERENCE FOR A SIMPLE SIX-MONTHS' EXTENSION OF

ARRANGEMENTS EXPIRING ON 31 MARCH. SINCE RISAKOTTA AND KARDO NO

STATED SAME PREFERENCE TO ME AT KATHMANDU MEETING IN NOVEMBER,

I WOULD ANTICIPATE NO DIFFICULTY IN NEGOTIATING SUCH A DEAL.

2. WHILE I WOULD EXPECT THAT DEAL COULD EASILY BE ACHIEVED BY

EMBASSY ACTION IN JAKARTA (PARA 3 OF TUR REFERS), JAKARTA'S TELNO 10 TO HONG KONG REPORTS A SPECIFIC INDONESIAN INVITATION

TO MEET THERE ON 12 MARCH: AND THERE ARE THREE REASONS WHY I

THINK WE SHOULD ACCEPT IT. FIRST, BOTH RISAKOTTA AND KARDONO HAVE

TOLD ME THAT THEY WOULD LIKE EVENTUAL SUBSTANTIVE ROUND OF

NEGOTIATIONS (PRESUMABLY IN SEPTEMBER 1979) TO TAKE PLACE OUTSIDE INDONESIA EITHER IN HONG KONG OR LONDON AND IT WOULD BE PRUDENT

TO ACCOMMODATE THEM. SECONDLY, JAKARTA TELNO 10 INDICATES THAT THERE WILL BE USEFUL GENERAL INFORMATION ABOUT ASEAN ATTITUDES TO ICAP TO BE PICKED UP ON PERSONAL BASIS FROM RISAKOTTA AROUND 12 MARCH. THIRDLY, IN LIGHT OF THOSE ASEAN DEVELOPMENTS IT WHOULD ALSO BE POSSIBLE TO GET SOME INDICATION FROM RISAKOTTA OF THE KIND OF SUBSTANTIVE UK/INDONESIA DEAL HE ENVISAGES IN POST ICAP SITUATION. FROM OUR POINT OF VIEW, WE NATURALLY HOPE T AT CPA'S WITHDRAWAL FROM KUALA LUMPUR/JAKARTA AND JAKARTA/PERTH SECTORS MAY LEAD TO OUR ACQUISITION OF RIGHTS AT BALI AND TO REMOVAL OF SEAT-RESTRICTIONS ON SINGAPORE/JAKARTA. SIMILARLY, WE MAY HOPE THAT GARUDA'S RUMOURED ACQUISITION OF B747S WILL REMOVE ANY DIFFICULTIES OF EVENTUAL CPA PARTIAL OR TOTAL SUBSTITUTION OF B747S FOR TRISTARS. HOWEVER, INDONESIAN RELUCTANCE TO EASE SEAT-RESTRICTIONS AND TO CONCEDE ACCESS TO BALI MAY TAKE THE FORM OF A PROPOSAL TO REDUCE CURRENT FREQUENCIES (FROM 10

CONFIDENTIAL

/TO, SAY, Y)

ہو