TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 154

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FM CANBERRA 310455Z JUL 79

TO PRIORITY FCO

TELEGRAM NUMBER 437 OF 31 JULY 1979

INFO PRIORITY HONG KONG (FOR GOVERNOR AND SCARFE)

YOUR TELEGRAM 357 UK/AUSTRALIA AIR SERVICES

1. COUNSELLOR (ECONOMIC) YESTERDAY DELIVERED TO ROWLAND (DEPARTMENT OF TRANSPORT) A LETTER BASED ON YOUR TUR REQUESTING, AMONG OTHER THINGS, IMMEDIATE AGREEMENT TO CPA'S REVISED FARES PACKAGE. ROWLAND

COMMENTED THAT IT WOULD NOT BE POSSIBLE TO AGREE THIS BY 3 AUGUST,

AS CPA HAD REQUESTED. THE AUSTRALIANS WOULD REQUIRE A LITTLE MORE

TIME. THEY WOULD NEED TO INFORM THE ASEAN COUNTRIES OF THE AGREEMENT.

THERE WERE ALSO A NUMBER OF TECHNICAL PROBLEMS, MAINLY INVOLVING MINOR ADJUSTMENTS TO FARES, WHICH THEY WOULD WISH TO DISCUSS WITH THE CAA. NEVERTHELESS, IT SHOULD BE POSSIBLE TO IMPLEMENT THE AGREEMENT BY MID-AUGUST. THIS WOULD ENABLE CPA TO TAKE ADVANTAGE OF THE PEAK SCHOOL HOLIDAY TRAFFIC. THE AUSTRALIAN HIGH COMMISSION IN LONDON HAD BEEN ASKED TO CONVEY THIS INFORMATION TO THE DEPARTMENT OF TRADE.

•

2. TURNING TO THE AUSTRALIA/UK ROUTE, ROWLAND COMMENTED THAT IT WOULD BE DESIRABLE TO HAVE A FURTHER ROUND OF DISCUSSIONS BEFORE MUCH LONGER. WHILST THE AUSTRALIANS WOULD LIKE SEPARATE AGREEMENTS WITH

THE ASEAN COUNTRIES, AND HAVE BEEN ENCOURAGED BY THEIR NEGOTIATIONS WITH ALL EXCEPT SINGAPORE, THEY DOUBT WHETHER THIS WOULD BE POSSIBLE.

HE WILL CONSIDER THE POINTS RAISED IN THE LETTER AND LET US HAVE A

REPLY IN THE NEAR FUTURE.

TEBBIT

FILES:

MAED

SPD

HK & G D

MISS BROWN

CONFIDENTIAL

COPIES TO:

MR T.STABLES CAIR/DOT

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