CONFIDENTIAL
CRS270
CONFIDENTIAL
Fil FCO 191747Z FEB 79
TELEGRAM NUMBER 167 OF 19 FEBRUARY
TO ROUTINE HONG KONG (GOVERNOR AND BCARFE)
INFO TO JAKARTA
HRK 184/1.
RECEIV
DỄ
INDEX
2 2 FEB 1979
No 1 J27.2
144
NG. 51
RE-
Acron
LK/INDONESIA AIR SERVICES
12
Sa
YOU WILL HAVE SEEN FROM CANBERRA TEL NO 76 OF 27 JAN THAT THE DATE ON WHICH CPA WOULD RELINGUISH THEIR FIFTH FREEDOM RIGHTS ON THE WESTERN AUSTRALIA ROUTE HAS BEEN LEFT OPEN. IN THE PRESENT STATE OF UNCERTAINTY ABOUT THE FULL IMPLEMENTATION OF THE AUSTRALIAN ICAP PROPOSALS, IT IS DIFFICULT TO ESTIMATE HOW LONG CPA WILL BE ABLE TO EXERCISE JAKARTA-PERTH RIGHTS
CR HOW LONG THEY WILL WANT TO DO SO BEARING IN MIND INDONESIA'S ATTACHMENT TO THE THIRD/FOURTH FREEDOM ONLY CONCEPT AND THE STATED INTENTION OF QUANTAS AND GARUDA TO MOUNT RECIPROCAL SERVICES ON THE ROUTE AT SOME, AS YET, UNSPECIFIED DATE. AT THE MOMENT,
IT APPEARS LIKELY THAT THE RIGHTS WILL BE AVAILABLE BEYOND APRIL THIS YEAR, BUT PROBABLY NOT BEYOND THE END OF THIS YEAR.
*
2. THIS LEAVES US WITH TWO ALTERNATIVES REGARDING RESUMED NEGOTIATIONS WITH INDONESIA FOR THE POST 31 MARCH 1979 REGIME BETWEEN HONG KONG AND INDONESIA. WE COULD EITHER EXTEND THE STATUS QUO FOR. A FURTHER SIX MONTHS IN THE EXPECTATION THAT BY, SAY, AUGUST THE ICAP SITUATION WILL HAVE CLARIFIED, OR WE COULD CALL FOR NEGOTIATIONS EARLY NEXT MONTH WITH A VIEW TO NEGOTIATING ON EITHER/OR POSITION, IE A REGIME IN WHICH CPA OPERATE BEYOND
JKT TO PER OR ONE IN WHICH THEY DO NOT.
3. SINCE GARUDA CURRENTLY ONLY OPERATE A DAILY DC10 TO HONG KONG. THE QUOTE OR UNQUOTE POSITION FOR CPA IS LIKELY TO BE ONE WHERE THEY SIMPLY HAVE A DAILY L1011 TO JAKARTA WITH WHATEVER IMPROVEMENT WE CAN OBTAIN ON THE PRESENT LIMITATION ON FIFTH FREEDOM CARRIAGE BETWEEN SINGAPORE AND JAKARTA, BUT THAT ASIDE THERE ARE DISADVANTAGES IN NEGOTIATING FROM A POSITION OF
CONFIDENTIAL
/ UNCERTAINTY,
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