CONROENTIAL
123 480
CONFIDENTIAL
DESKBY FCO 091200Z FEB
HERITY|I
DESKBY WASHINGTON 091480Z FEB
DESKBY BANGKOK 120130Z FEB
DESKBY ALL OTHER ADDRESSEES 0911092 FEB
No
PA
FM KUALA LUMPUR 090945 7 FEB 79
TO IMMEDIATE FCO
TELEGRAM NUMBER 92 OF 9 FEBRUARY
INFO IMMEDIATE WELLINGTON BANGKOK SINGAPORE CANBERRA GOV AND BCARFE
HONG KONG AND WASHINGTON
WELLINGTON TELNOS 3 AND 4 TO KL : UK/NEW ZEALAND AIR FARES
FOLLOWING FROM ROGERS FOLLOWING
1. THE NEW ZEALAND INTENTIONS REPORTED IN FIRST TUR DO NOT COME
AS ANY GREAT SURPRISE SINCE HEALY WAS EVIDENTLY UNDER GREAT
PRESSURE FROM AIR NEW ZEALAND (ANZ) AT THE TALKS WITH ROGERS IN
WELLINGTON LAST WEEK.
2. THE FUNDAMENTAL PROBLEM IS THAT ANZ WANT TO BE ABLE TO QUOTE
COMPETE UNQUOTE FOR THE THROUGH TRAFFIC ON THE TRUNK ROUTE BETWEEN
NEW ZEALAND AND THE UK WITHOUT PROVIDING SERVICES ON THAT ROUTE,
3. AT THE TALKS IN WELLINGTON ROGERS EXPLAINED THE REASONS WHY
WE WOULD FIND IT IMPOSSIBLE TO ACCEPT A FARE WHICH WAS AVAILABLE
FOR TRAVEL VIA LOS ANGELES AND INVOLVED A CHANGE FROM ONE SERVICE
TO ANOTHER THERE BUT WHICH WAS NOT AVAILABLE FOR CORRESPONDING
TRAVEL OVER SINGAPORE OR HONG KONG. ROGERS WONDERS WHETHER THE NEW ZEALANDERS HAVE FULLY APPRECITATED THE ACRIMONY TO WHICH THIS IS
LIKELY TO LEAD ESPECIALLY IN SINGAPORE. HE KNOWS OF NO ECONOMIC
JUSTIFICATION WHICH COULD BE SUSTAINED FOR THE DISCRIMINATION
PROPOSED. IT WOULD MEAN THAT FOR EXAMPLE PANAM WOULD BE ABLE TO
CARRY THE UK-NEW ZEALAND TRAFFIC AT THE NEW LOW FARE BY A QUOTE
BACK-TO-BACK UNQUOTE SERVICE OVER LOS ANGELES WHEREAS
SIA WOULD BE PRECLUDED FROM ACTING LIKEWISE. THIS WOULD BE BOUND TO
BE REPRESENTED AS A FURTHER EXAMPLE OF FAVOURING THE RICHER
COUNTRIES AS AGAINST THE POOR.
CONFIDENTIAL
14. ON
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