TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 65

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CONFIDENTIAL

HKK 184||

2 8 MAR 1979

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FM CANBERRA 270855Z MAR 79

TO IMMEDIATE FCO

TELEGRAM NUMBER 184 OF 27 MARCH 1979

no2263

له

AND TO IMMEDIATE HONG KONG (GOVERNOR AND SCARFE)

INFO KUALA LUMPUR, JAKARTA, MANILA, BANGKOK, WELLINGTON AND SINGAPORE. MY TELNO 182 AND DOT TELNO ALLOT 8: HONG KONG/AUSTRALIA AIR SERVICES.

1. THE NEED FOR THE EARLY INTRODUCTION OF THE HONG KONG PACKAGE OF LOWER FARES IS FULLY SEIZED BY MR NIXON AND BY DEPARTMENT OF TRANSPORT OFFICIALS, INDEED MR NIXON SAID PUBLICLY IN SYDNEY YESTERDAY (TO THE SURPRISE OF HIS OFFICIALS) THAT HE HOPED THE PACKAGE WOULD BE ANNOUNCED THIS WEEK.

2. ROWLAND TOLD FIRST SECRETARY (ECONOMIC) YESTERDAY THAT OFFICIALS HAVE NOT YET HAD THE TIME TO CHECK THE PROPOSED AUSTRALIA/ASEAN FARES (SEE MIPT) AGAINST THE HONG KONG PACKAGE TO MAKE SURE THAT THE RELATIVITIES ARE ABOUT RIGHT, FURTHER COMPLICATIONS ARE THAT ASEAN, FIRST, HAVE PROPOSED GIT, NOT WHOLESALE, FARES AND, SECOND, THAT ECONOMY FARES SHOULD REMAIN AT THE PRESENT IATA LEVELS, ROWLAND THINKS THAT IT MAY BE NECESSARY TO LEAVE THE WHOLESALE CONCEPT ON ONE SIDE FOR 6-8 MONTHS, ROWLAND REPEATED THAT THE URGENCY HAD BEEN WELL AND TRULY REGISTERED BY THE DEPARTMENT OF TRANSPORT AND ADDED THAT HE HOPED TO REVERT LATER IN THE WEEK.

TEBBIT

[COPIES SENT TO CAD/LOT]

FILES:

MAED

SPD

SEAD

HKGD

NEWS D

MR BUTLER MR CORTAZZI MISS BROWN MR MURRAY

CONFIDENTIAL