TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 74

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CONFIDENTIAL

FROM F C O 201625Z JUN 79

TO ROUTINE CANBERRA

TELEGRAM NUMBER 246 OF 20 JUNE.

CONFIDENTIAL

HKK 184/1

2 1 JUN1979

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See 287

INFO SINGAPORE, KUALA LUMPUR, MANILA, BANGKOK, JAKARTĀ, HONG KONG (GOV. BCARFE), WELLINGTON, PEKING (FOR ROGERS).

UK/AUSTRALIA AIR SERVICES.

HE

1. WHEN MR COH (SINGAPORE MINISTER FOR TRADE) PAID A CALL ON MR PARKINSON MINISTER OF STATE (TRADE) ON 18 JUNE, HE RAISED ICAP. MR GOH SAID THAT ASEAN MINISTERS WOULD NOT ACCEPT THE PACKAGE

AGREED BETWEEN ASEAN AND AUSTRALIAN OFFICIALS AT THE MEETING

1

IN KUALA LUMPUR, THE FEATURE WHICH THEY FOUND PARTICULARLY UNACCEPTABLE WAS THE CONDITION ATTACHING TO THE STOP-OVER FARE (WHEREBY TRAVEL ON THE THROUGH LEG COULD BE BY BA AND QANTAS ONLY). THEY APPEAR TO ACCEPT THE SURCHARGE OF AUS DOLLARS 150. ASEAN BELIEVE THAT THE STOPOVER CONDITION VIRTUALLY GIVES BA

AND QANTAS A VETO ON ANYONE TRAVELLING ON THE STOP-OVER LEG BY

ANY OTHER AIRLINE SINCE BA AND QANTAS COULD SAY THAT THEY DID NOT HAVE CAPACITY TO TAKE THE PASSENGER ON THE PREFERRED CHOICE FOR

DATE OF RETURN. HE SAID THEY WOULD BE QUITE HAPPY FOR

THE CONDITION TO BE AMENDED TO READ THAT THE PASSENGER MUST

TRAVEL BY THE SAME AIRLINE THROUGHOUT EACH LEG OF THE JOURNEY,

WHEN IT WAS POINTED OUT THAT THIS WOULD BE OF NO BENEFIT TO BA AND QANTAS SINCE NEITHER WOULD BE RETAINING FIFTH FREEDOM RIGHTS BEYOND POINTS IN ASEAN COUNTRIES, HE SAID THAT THEY WERE QUITE HAPPY FOR BA AND QANTAS TO RETAIN THESE RIGHTS.

2. HE SAID ALSO THAT THEY (WHETHER THIS WAS SINGAPORE OR ASEAN WAS NOT CLEAR) FOUND THE QUOTA OFFERED FOR ACCESS TO THE

TRAFFIC TRAVELLING AT THE THROUGH APEX FARE TOO LOW AND WOULD BE

LOOKING FOR SOME INCREASE IN THAT.

:

CONFIDENTIAL.

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