TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 166

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SENTENCE OF PARA 4 BELOW, HAVE TO LOOK OUTSIDE THE REGION FOR LARGER CONCESSIONS FROM THE INDONESIANS, THAN WE WOULD BE LIKELY TO GET WITHIN IT. IN THIS SITUATION WE MIGHT FIND WE NEEDED TO INTRODUCE THE IDEA OF A JAKARTA TERMINATOR, OR IN VIEW OF THE IMPROVED SITUATION IN MALAYSIA, MORE IMPORTANTLY, OVERFLIGHT

FOR CONCORDE.

4. ON OUR PRESENT INFORMATION THE MOST IT SEEMS THE INDONESIANS

WOULD BE LIKELY TO OFFER WITHIN THE REGION WOULD BE AN

IMPROVEMENT IN CPA'S AUTHORISED CAPACITY BETWEEN JAKARTA AND

SINGAPORE. THEY REGARD ACCESS TO BALI AS NON-NEGOTIABLE AND WISH

IN DUE COURSE TO EXCLUDE ALL FOREIGN CARRIERS EXCEPT QANTAS.

5. AGAINST THIS BACKGROUND THE KEY TO THE EXTENT WE SHALL BE ABLE TO MAINTAIN THE STATUS QUO WILL TURN ON HOW KEEN THE INDONESIANS ARE IN ASA DISCUSSIONS TO PREPARE THE GROUND FOR. INTRODUCING

THEIR INCREASED CAPACITY FROM THE MIDDLE OF 1980. WE HAVE NO DIRECT INFORMATION ON THIS, BUT SOME REASON FOR THINKING THEY ARE LOOKING NOT ONLY FOR IMPROVEMENTS IN THE EXISTING PATTERN OF REGIONAL SERVICES, BUT ALSO POSSIBLY FOR A TRANS-PACIFIC ROUTE IN WHICH RESUMABLY THEY WILL EXPECT HK TO FEATURE. WIWEKO HAS PROBABLY DISCLOSED ONLY A LITTLE OF HIS AIRLINE'S HOPES FOR THE PERIOD

FOLLOWING MID 1989.

6. SUBJECT TO BCARFE'S VIEWS, THERE WOULD APPEAR TO BE EVERY ADVANTAGE IN LETTING THE INDONESIANS MAKE MOST OF THE RUNNING

IN SEPTEMBER.

SPENDLOVE

[COPIES SENT TO CAD/DOT]

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MAED SEAD

HK & GD MISS BROWN

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