TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 153

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NOT 21

FM SINGAPORE 120440Z FEB 79

TO PRIORITY FCO

TELEGRAM NUMBER 86 OF 12 FEBRUARY

AND TO PRIORITY CANBERRA, KUALA LUMPUR, HONG KONG (GOVERNOR AND BCARFE), JAKARTA, MANILA, BANGKOK,

1 No

UK/AUSTRALIA AIR SERVICES

1s STRAITS TIMES OF 10 FEBRUARY CARRIED AN ARTICLE COMMENTING ON THE LEVEL OF UK/AUSTRALIA STOPOVER FARES BASED ON THE AUSTRALIAN OFFER OF A SINGAPORE/AUSTRALIA SECTOR FARE OF DOLLARS AUSTRALI AN 464. ARTICLE SAYS THAT THIS WOULD YIELD A UK/AUSTRALIA OFF-PEAK

STOPOVER FARE OF DOLLARS AUSTRALIAN 1964 WHICH WAS FAR TOO HIGH

AGAINST AN ICAP OF DOLLARS AUSTRALIAN 568. AFTER SAYING THAT

SINGAPORE HAD NOT TAKEN UP AN OFFER BY ROGERS WHEN HE WAS HERE IN

JANUARY TO NEGOTIATE A LOWER LONDON/SINGAPORE SECTOR FARE BECAUSE

SHE WANTS THE AIR SERVICES ISSUE TO BE NEGOTIATED ON AN ASEAN

BASIS, THE ARTICLE ARGUES THAT IF SINGAPORE SUCCEEDS IN NEGOTIAT-

ING NEW LOWER SECTOR FARES COMPETITIVENESS WITH THE ICAP FARES

CAN BE RETAINED. ''THE QUESTION IS HOW LOW AUSTRALIA AND BRITAIN

ARE WILLING TO GO". SINGAPORE CAN BEGIN TO RELENT'' IF THE

SINGAPORE/AUSTRALIA SECTOR CARE WERE BROUGHT DOWN TO DOLLARS AUSTRALIAN 200. AS THE SINGAPORE/LONDON SECTOR IS TWICE AS LONG

THIS WOULD POINT TO A STOPOVER FARE OF DOLLARS AUSTRALIAN 630

OFF-PEAK. THE AUSTRALIANS WERE UNLIKELY TO ACCEPT SUCH A

PROPOSAL: IF THE ASEAN AIRLINES FOUND IT VIABLE, AUSTRALIA WOULD

FIND IT HARD TO EXPLAIN WHY IT WOULD NOT WORK WITHOUT IT

APPEARING THAT ICAP WAS INTRODUCED TO PROTECT QANTAS.

24 THIS IS THE FIRST INDICATION I HAVE SEEN THAT SINGAPORE HAS

BEEN GIVING ANY THOUGHT RECENTLY TO COUNTER-PROPOSALS ON STOP-

OVER FARES.

HENNINGS

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AK SGD MISS BROWN

SPD

MA GUTLEL

SEAD

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