GRS 460
CONFIDENTIAL
FM F C 0 2717152 JULY 79.
TO PRIORITY CANBERRA
CONFIDENTIAL
Mcrisy, P.A.
RECEIVED IN AFOS BY NO.
3 0 JUL 1979
346
TELNO 357 OF 27 JULY
INFO PRIORITY HONG KONG (GOVERNOR AND DGARFE).
Д.
See
349
3441
HONG KONG TELNO 1643: UK/AUSTRALIA AIR SERVICES.
352
1. NOW THAT ASEAN ECONOMIC MINISTERS MEETING SCHEDULED FOR 25 JULY IS UNLIKELY TO TAKE PLACE UNTIL SEPTEMBER AT EARLIEST WE BELIEVE IT WOULD NO LONGER BE FAIR TO HONG KONG FOR AUSTRALIA TO CONTINUE TO DELAY IMPLEMENTING AGREEMENT ON HK/AUSTRALIA FARES UNDER ICAP)
2. PLEASE MAKE CLEAR TO AUSTRALIANS THEREFORE THAT WE NOW EXPECT
THEM TO INTRODUCE THE AGREEMENT WITHOUT FURTHER DELAY. YOU SHOULD
MAKE THE FOLLOWING POINTS.
(A) WE HAVE ALREADY WAITED 6 MONTHS FOR IMPLEMENTATION AND THIS
DELAY IS CAUSING CONSIDERABLE DISSATISFACTION IN HONG KONG. (3) 1
IN HIS LETTER OF 1 JULY TO ATTEWELL, ROWLAND SSAID AUSTRALIANS HAD TAKEN OPPORTUNITY AT KUALA LUMPUR TO INFORM EACH
ASEAN GOVERNMENT THAT IT WOULD NOT CONTINUE TO DELAY ANNOUNCING NEW FARES TO HONG KONG IF SETTLEMENT OF OUSTANDING AUSTRALIAN/ASEAN
ISSUES WAS UNDULY DELAYED. POSTPONEMENT OF ASEAN
MEETING MAKES IT CLEAR THERE WILL BE UNDUE DELAY.
(C) CPA HAVE SUFFERED DIVERSION OF TRAFFIC DUE TO LACK OF COMPETITIVE FARES ON E. AUSTRALIAN-HK ROUTE (PARA 2 OF TUR). (D) AGREEMENT REACHED AT AIRLINE MEETING IN KUALA LUMPUR
IN JUNE ON FARE LEVELS AND CONDITIONS PLUS ABANDONMENT OF SIXTH FREEDOM (PARA 4 OF YOUR TELNO 361) MUST SURELY REMOVE MUCH OF THE POLITICAL OBJECTION TO IMPLEMENTING AGREEMENT
3. PLEASE PRESS STRONGLY FOR IMMEDIATE AUSTRALIAN
AGREEMENT TO REVISED FARES PACKAGE FILED BY CPA EARLIER THIS MONTH. THIS REFLECTS COMPROMISES REACHED AT AIRLINE MEETING (PARA 2(D) ABOVE) AND ALSO INCLUDES A 79% INCREASE ON ACCOUNT CF FUEL COSTS.
CONFIDENTIAL
/.YOU SHOULD
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