TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 196

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FM KUALA LUMPUR 060205Z FEB 79

TO PRIORITY FCO

TELNO 74 OF 6 FEB

INFO SINGAPORE, BANGKOK,' HONG KONG (GOVERNOR AND BCARFE),

JAKARTA, CANBERRA AND WELLINGTON

mce 184/A

MANILA,

No

J 2x12

UK/MALAYSIA AIR SERVICES TALKS

1. WITH THE CONCURRENCE OF CORTAZZI AND MYSELF, ROGERS BEGAN THE

TALKS WITH THE MALAYSIANS HERE ON 5 FEBRUARY SLOWLYAND IN A VERY

LOW KEY. HE RECALLED THE UNDERSTANDING REACHED A YEAR AGO THAT

THE REVIEW OF OUR AIR SERVICES ARRANGEMENTS WOULD BE CONDUCTED IN

A NEW SPIRIT ON BOTH SIDES WITH A VIEW TO MAKING A FRESH START

( MY TELNO 8Ø OF 14 FEBRUARY 1978). THERE HAD BEEN MAJOR CHANGES

IN THE CIVIL AVIATION SCENE SINCE THE LAST MEETING IN MAY 1978 ( NOTABLY THE INTRODUCTION OF THE ICAP REGIME) AND THESE WOULD

NEED TO BE TAKEN INTO ACCOUNT.

2. BEFORE THE FIRST PLENARY SESSION BEGAN HAMZAH TOOK ROGERS ASIDE AND SAID HE HOPED THAT IT WOULD BE POSSIBLE TO MAKE SOME PROGRESS IN THE DEVELOPMENT OF OUR AIR SERVICES RELATIONS AT THIS ROUND OF TALKS, ROGERS REPLIED THAT HE, ALSO, HOPED TO MAKE SOME PROGRESS ALTHOUGH THE CONTINUING DISPUTE BETWEEN THE ASEAN COUNTRIES AND .AUSTRALIA WOULD MAKE IT IMPOSSIBLE TO REACH FINAL CONCLUSIONS AT

THIS STAGE. HAMZAH COMMENTED THAT THIS NEED NOT RULE OUT BILATERAL NEGOTIATIONS AND GENTLE SOUNDINGS OF THE MALAYSIAN POSITION BOTH THEN AND IN THE COURSE OF SUBSEQUENT DISCUSSION ELICITED A WILLINGNESS ON THE PART OF THE MALAYSIANS TACITLY TO WORK ON THE ASSUMPTION THAT ICAP WOULD BE IMPLEMENTED MORE OR LESS AS IT STOOD.

3. ROGERS SPENT SOME TIME AT THE BEGINNING OF THE DISCUSSIONS IN * EXPLAINING THE IMPLICATIONS OF ICAP FOR SERVICES BETWEEN THE UK,

HONG KONG AND, MALAYSIA. HE MENTIONED THE STOPOVER PROBLEM IN GENERAL TERMS WITHOUT GOING INTO ANY DETAILS OF THE PROPOSED STOPOVER FARE: AND EXPLAINED THAT IT WAS THE INTENTION OF THE UK AND AUSTRALIA THAT THOSE UK/AUSTRALIA PASSENGERS WHO GENUINELY WANTED TO TAKE STOPOVERS SHOULD NOT BE INHIBITED BY EXCESSIVE COST. HE COMMENTED THAT THE WHOLE QUESTION OF AIR FARES, WHICH HAD UNTIL RECENTLY BEEN THE PRESERVE OF SPECIALISTS AND WHICH COVERNMENTS HAD BEEN ONLY TOO HAPPY TO LEAVE TO IATA TO SORT OUT, HAD NOW BECOME A HIGHLY CHARGED POLITICAL ISSUE.

*

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