TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 150

GRS 370

CONFIDENTIAL

FM F C 0 03183OZ MAY 79

CONFIDENTIAL

HKK. 184/1 P.A

10 MAY 1979

TO IMMEDIATE CANBERRA TELEGRAM NUMBER 146 OF

8 MAY

INDEX

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AND TO IMMEDIATE HONG KONG (GOV AND BCARFE) INFO KUALA LUMPUR BANGKOK JAKARTA MANILA SINGAPORE WELLINGTON.

KUALA LUMPUR TELNO ALLOT 9 (NOT TO ALL) OF 7 MAY: UK/AUSTRALIA

AIR SERVICES

1. ROGERS (DOT) HAS NOW RECEIVED THROUGH AUSTRALIAN HIGH COMMISSION HERE TEXTS OF JOINT PRESS RELEASE ISSUED ON 7 MAY AT THE CONCLUSION OF THE MEETING BETWEEN AUSTRALIAN AND ASEAN OFFICIALS IN KUALA LUMPUR, TEXT OF CONFIDENTIAL AGREED SUMMARY RECORD OF THE MEETING, AND TEXT OF STATEMENT BY MR NIXON AND MR PEACOCK, PRESS COMMENTS, ETC. WE NOW AWAIT INFORMATION ON REASONS UNDERLYING DECISIONS REACHED AND, IN PARTICULAR, ON AUSTRALIAN ACCEPTANCE OF A STOPOVER SURCHARGE AT THE VERY LOW FIGURE OF DOLLARS A 150 YEAR ROUNDUS COMPARED WITH THE AGREED FIGURES CONTAINED IN ROGERS' LETTER OF 25 APRIL TO ROWLAND (OUR TELNO 136). WE ARE CONSIDERING THIS CAREFULLY BUT AT FIRST BLUSH THERE IS A DANGER THAT THE CONCESSIONS MADE BY THE AUSTRALIANS WILL UNDERMINE THE FINELY BALANCED ECONOMICS OF THE VERY LOW APEX FARE AND AN INCREASE IN THE END

TO END FARE CANNOT BE RULED OUT.

2. FOR HONG KONG. RELEVANT PASSAGE IN CONFIDENTIAL AGREED SUMMARY

RECORD OF THE MEETING READS AS FOLLOWS

QUOTE OFFICIALS ALSO CONSIDERED THE ASEAN PROPOSALS FOR INTRA-ASEAN ADD-ON FARES TO BE USED IN CONJUNCTION WITH . AUSTRALIA/ASEAN APEX AND GIT FARES AGREED IN PRINCIPLE AT THE JAKARTA MINISTERIAL MEETING AND REVIEWED THE TERMS

AND CONDITIONS WHICH SHOULD APPLY TO THESE FARE TYPES. THEY HAVE FURTHER AGREED THAT DISCUSSIONS BETWEEN THE

AIRLINES SHOULD CONTINUE WITH A VIEW TO FACILITATING

THE EXPEDITIOUS CONSIDERATION OF ALL TERMS AND

CONDITIONS RELATING TO THESE FARE TYPES BY THE APPROPRIATE AUTHORITIES, PREFERABLY ON OR ABOUT JUNE 30, 1979.

CONFIDENTIAL

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