FRS 574
CONFIDENTIAL
CONFIDENTIAL
Her 184/1
RECEIVED IN AFOST
LA-
2 8 AUG 1979
388
FM F C O 2416062 AUG 79
TO IMMEDIATE JAKARTA
TELEGRAM NO 134 OF 24 AUGUST
아
INDE
REGIDIHY
PA
Action Taken
AND TO PRIORITY HONG KONG (GOVERNOR AND BCARFE
378
S YOUR TELNO 239 AND HONG KONG TELNO 1175: UK/INDONESIA AIR SERVICES
BEGINS:
1. WE ARE GRATEFUL FOR THE ADVICE IN TUR'S. WE HAVE TAKEN THE OPPORTUNITY OF BCARFE'S PRESENCE IN THE UK TO CONSULT HIM, OUR CONSIDERED VIEW IS THAT OUR OBJECTIVES IN THE FORTHCOMING TALKS IN JAKARTA SHOULD BE A MAJOR RENEGOTIATION OF THE REGIONAL ARRANGEMENTS TO PROVIDE FOR A LONGER TERM SETTLEMENT AND AT LEAST A PRELIMINARY DISCUSSION ABOUT THE POSSIBILITY OF TRUNK ROUTE
SERVICES.
2. THE MAIN REASON FOR THE INTERIM ARRANGEMENTS FOR REGIONAL SERVICES OVER THE LAST 18 MONTHS HAS BEEN THE UNCERTAINTY BECAUSE ICAP PROBLEMS HAVE NOT BEEN RESOLVED. THESE ISSUES ARE STILL UIRESOLVED AND WE CANNOT FORECAST WHEN THEY WILL BE SETTLED, OTHER FACTORS, HOWEVER, HAVE ASSUMED IMPORTANCE. IN PARTICULAR CPA NEED AGREEMENT TO THE USE OF B747'S ON THE HKG-SIN-JKT ROUTE GARUDA WILL WANT OPPORTUNITIES TO DEPLOY THEIR NEW EQUIPMENT AND THEIR NEEDS MAY BE MORE PRESSING THAN OURS. MOREOVER, GARUDA HAVE GONE INTO THE LEAD ON EARNINGS FROM REGIONAL SERVICES (PARA € OF SECOND TUR). WE ACCEPT THAT THERE IS A RISK THAT WE COULD FUT OURSELVES IN TOO MUCH OF A POSITION OF DEMANDEUR IF WE PRESSED TOO HARD ON THE TRUNK ROUTE IF, AS SEEMS LIKELY, GARUDA ARE NOT INTERESTED IN COMING TO LONDON. BUT OVERALL OUR POSITION SEEMS REASONABLY STRONG. IT IS A QUESTION OF TACTICS HOW WE PLAY OUR HAND AND IT WILL PROBABLY BE BEST TO LET INDONESIA TAKE THE LEAD AS FAR AS POSSIBLE. WE SHOULD HOWEVER GIVE THEM NOTICE OF OUR IDEAS FOR THE AGENDA IN REASONABLE DEPTH IN ORDER TO PREPARE FOR SENSIBLE NEGOTIATIONS.
3. SUBJECT TO ANY FURTHER COMMENTS WHICH YOU OR HONG KONG MAY HAVE,
WE SHOULD BE GRATEFUL IF YOU WOULD APPROACH THE INDONESIAN
AUTHORITIES ALONG THE FOLLOWING LINES:-
CONFIDENTIAL
/AT
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