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(VI) FOR YOUR INFORMATION, WE UNDERSTAND FROM INLAND REVENUE THAT THE WORDING IN THE NETHERLANDS/INDONESIA AIR TRANSPORT AGREEMENT REFERRED TO IN PARA (III) ABOVE IS AS FOLLOWS: 'THE TERM 'TERRITORY' IN RELATION TO A CONTRACTING PARTY MEANS THE LAND AREAS AND THE TERRITORIAL WATERS UNDER THE SOVEREIGNTY OF THAT CONTRACTING PARTY AS DEFINED IN ITS LAWS AND IN ACCORDANCE WITH INTERNATIONAL LAW: THE EXERCISE OF SOVEREIGNTY BY THE REPUBLIC OF INDONESIA EXTENDS TO THE AIRSPACE OVER ITS ARCHIPELAGIC WATERS SUBJECT TO THE PROVISIONS OF PART IV OF THE UN CONVENTION ON THE LAW OF THE SEA 1982'
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2. YOU SHOULD BEAR IN MIND THAT WE DO NOT WISH TO HAVE WORDING INCLUDED IN ANY AGREEMENTS WITH WHICH UK IS ASSOCIATED WHICH IS INCONSISTENT WITH HMG'S FIRMLY STATED POLICY ON UNLOSC AND OF NON-RECOGNITION DE JURE OF EAST TIMOR.
3.
YOU SHOULD CONTINUE TO TALK TO THE DFA TAKING INTO ACCOUNT THE ABOVE. IF YOU JUDGE IT AN ADVANTAGE TACTICALLY, YOU HAVE DISCRETION TO MAKE THE LINKAGE EXPLICIT. DTP ARE PARTICULARLY KEEN TO ESTABLISH AN ACCEPTABLE DEFINITION OF TERRITORY IN THE HONG KONG/INDONESIAN ASA BEFORE THE SEPTEMBER ROUND OF AIR
SERVICES TALKS.
4. FOR HONG KONG.
WE INTERPRET THE CONCERNS EXPRESSED IN HONG KONG TELEGRAM 2053 AS MEANING THAT YOU DO NOT WISH US TO USE THE HONG KONG ASA TALKS AS LEVERAGE ON THE DTA AND COPYRIGHT AGREEMENTS WITH INDONESIA, AND THAT YOU ARE ASKING US NOT TO PURSUE FURTHER WITH THE INDONESIANS UNTIL YOU HAVE HAD A CHANCE TO NEGOTIATE THE SEPARATE ASA IN SEPTEMBER. WE BELIEVE THAT THE INDONESIANS ARE PARTICULARLY ANXIOUS TO CONCLUDE AN ASA WITH HONG KONG AND THE CHANCES OF OBTAINING A FORM OF WORDS CONSISTENT WITH THIS POLICY ARE NOW AT THEIR BEST. PLEASE LET US KNOW IF YOU
MEANT OTHERWISE.
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