TNAG-0891-FCO40-1101-Refugees-from-Vietnam-in-Hong-Kong-Vietnamese-boat-people-1979 — Page 141

CONFIDENTIAL

stop-overs in Singapore. This affected both the tourist industry

and the airline. The Australians had started by reducing the

capacity available on routes to South East Asia. They had originally intended the total exclusion of foreign airlines from the Australia-

London route, but this exclusion was now only for cheap fare

passengers. Mr Dhanabalan suggested that airline interests should

not be allowed to override civil aviation policy or the broader national interest and that Foreign Offices should make a greater input into civil aviation negotiations. Singapore had extracted

some concessions from the Australians but the UK was also involved,

and they would come to us next. They wanted Qantas and British

Airways to come to Singapore to carry passengers. In their experience demand for cheap fares had been greater than anticipated

and they hoped to move towards an open sky policy. The Australian

problems were partly a question of efficiency and cabin service.

But sometimes the national interest required that airline interests

should be curbed.

11. Mr Blaker undertook to inform himself on the subject when

negotiations with us

recommenced.

12. The meeting closed at 12.10 pm.

19 June 1979

Distribution:

PS

PS/Mr Blaker

PS/LPS

PS/Mr Hurd

PS/PUS

Mr Cortazzi

Mr Murray

DOT, CRE

DOT, CAIR

UKMis New York UKMis Geneva

Singapore

Kuala Lumpur

Bangkok

SEAD

UND

FED

MAED

SPD

HKGD

TRED

Jakarta

Manila

Peking

Hanoi

Hong Kong

CONFIDENTIAL

South East Asian Dept