TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 76

CONFIDENTIAL

London last May, Mr Steele, Deputy Secretary DOT, showed that he appreciated this requirement and it is encouraging that he

is to lead in the next round of talks.

6. We are not however out of the wood yet. The outcome of

the dispute between Australia and ASEAN on the Australia ICAP

scheme is by no means clear. Early talks with the Malaysians

to revise our ASA with them must inevitably get involved not only

with Concorde but also with the ICAP issue, and could jeopardise

our policy of waiting until the Australians and ASEAN have come

to some agreement.

ahead.

7.

There are likely to be difficult decisions

I submit a draft letter to Sir Donald Hawley from Lord

Goronwy-Roberts since the Minister of State was personally

involved in this issue. SEAD agree.

8.

I have sent a copy for printing in the departmental series.

сс

PS

PS/PUS

Mr Butler

Mr Cortazzi

SEAD

SPD HKD

THIS

COPY FOR

MRMorland

MR Morland

Maritime, Aviation and Environment

Department

21 March 1979

CONFIDENTIAL