TNAG-0865-FCO40-1075-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 192

7

Mr Murray

HACK 184/1... PA.

CONFIDENTIAL

Was this deares

us ?

Mr wille

шуват

327

177vü

16/bar Michave-no- I had

heard it won being drafted

but assumed the Herrland, who

ICAP FARES BETWEEN AUSTRALIA AND HONG KONG: drafted personalen, womed

HONK KONG TELNO 955

clear with now. I had bear and to halien that a v. Stay hui ayant the

Australiam moned he recommended to LITE 1. You reacted strongly to Hong Kong telno 955 and asked akut.

307

for action to meet Hong Kong's concern.

We have chivvied

This is

"arsappointing.

the DOT accordingly; but it seems to us and them that while u Austrations

promicul to

new James by hurt the end of

the Australians are being a bit unreasonable, Hong Kong' is mihoduce the crying before there is any immediate risk of it being and would lose nothing by a delay till soon after the ASEAN, Magie Australian Economic Ministers meeting on 25 July. with ASEAN

after them last meetrig

2.

Puikiam Agreement on Hong Kong/Australia fares under the ICAP 16.7

(mcluding Hong Kong) system was reached in late January but both sides agreed at that

time that an immediate announcement would be regarded as provo

cative by ASEAN. We have since asked the Australians several

times whether the new fares could go ahead but each time there

has been another Australian/ASEAN meeting in prospect and the

Australians have been unwilling to risk souring the atmosphere

by announcing agreement with Hong Kong. We do not entirely agree

withthe Australians that an early announcement would be damaging

politically. It might indeed do some good by putting pressure

on the ASEAN countries to settle with Australia at last and

would not in the meantime damage their airline interests. The

Australians have now warned the ASEAN countries that they will

CONFIDENTIAL

/not