TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 64

CONFIDENTIAL

5. RAINBIRD UNDERSTOOD THAT THE SINGAPOREANS HAD RECENTLY TOLD THE

JAPANESE THAT IF THE LATTER WERE TO AGREE TO LOW POINT-TO-POINT

FARES WITH THE AUSTRALIANS. THE ASEANS WOULD REGARD IT AS ''AN

UNFRIENDLY ACT''. THE JAPANESE HAD SUBSEQUENTLY DISPLAYED SOME

NER VOUSNESS. THEY HAVE APPARENTLY DESCRIBED RECENT JAPANESE-AUSTRALIA TALKS ON FARES TO THE ASEANS AS BEING PURELY AT THE AIRLINE LEVEL (WITHOUT REVEALING THAT THEY FLOW FROM A FORMAL GOVERNMENT-TO- COVERNMENT EXCHANGE). THE AUSTRALIANS TOLD THE JAPANESE THAT THE IMPLEMENTATION OF CHEAP HONG KONG-AUSTRALIA FARES HAD ALREADY BEEN MUCH DELAYED. TRAVELLERS WOULD OBVIOUSLY GO VIA HONG KONG RATHER THAN DIRECT IF THE HONG KONG FARES WERE IN PLACE IN ADVANCE OF A JAPANESE PACKAGE. (RAINBIRD CLEARLY SAW THIS AS AN ARGUMENT TO ENCOURAGE THE JAPANESE RATHER THAN AS A REASON FOR FURTHER DELAYING CH HONG KONG).

6. PLEASE PROTECT RAINBIRD'S CONFIDENCES.

TEBBIT

FILES

MAED

SEAD.

SPD.

itk&Go

MR CORTAZZ21 MISS BROWN. MR MURRAY

[COPIES SENT TO CHOPOT].

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