CONFIDENTIAL
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MDHIA! 6087%
FROM METROPOLITAN INTERESTS. THIS POLICY HAS BEEN APPLIED EVEN MORE VIGOROUSLY SINCE THE JOINT DECLARATION WAS SIGNED AND THE ASA SEPARATION EXERCISE WAS LAUNCHED. HMA JAKARTA'S PROPOSAL TO CREATE A LINKAGE BETWEEN THE SEPARATED ASA AND THE TWO STALLED UK TREATIES THEREFORE CUTS ACROSS LONG STANDING POLICY AND PRACTICE.
4.
IF WE ARE SUCCESSFUL IN COMPLETING THE NEGOTIATION OF A SEPARATED ASA IN SEPTEMBER, THE IMMEDIATE PRODUCT WILL BE AN INITIALLED ASA TEXT, WHICH WILL THEN HAVE TO BE CLEARED WITH THE CHINESE BEFORE SIGNATURE (JAKARTA TELNO 410). IN THE INTERIM ANY REVISED ROUTE AND TRAFFIC RIGHTS ARRANGEMENTS WOULD BE GIVEN EFFECT UNDER THE 1973 UK/INDONESIA ASA. WHEN EVENTUALLY THE HONG KONG/INDONESIA ASA IS SIGNED IT WILL BE SIGNED BY HONG KONG, NOT HMG. AT ABOUT THAT TIME THERE WILL BE A NEED FOR AN EXCHANGE OF NOTES BETWEEN YOU AND INDONESIA ESSENTIALLY EXCLUDING HONG KONG FROM THE SCOPE OF THE UK/INDONESIA ASA. THIS WAS, WE HOPE, MADE CLEAR TO THE INDONESIANS IN THE PAPER TABLED BY FIELDER (DTP) DURING THE NEGOTIATIONS LAST WEEK. BUT, UNLESS YOU AGREE TO REVISIONS, THE TEXT OF THE UK/INDONESIA ASA WILL CONTINUE IN FORCE UNCHANGED: AND THIS WILL INCLUDE THE PRESENT DEFINITION OF TERRITORY IN ARTICLE 1 (D).
5. BEFORE AND DURING DINNER ON 21 JUNE, VARIOUS MEMBERS OF THE INDONESIAN DELEGATION SEPARATELY TOLD VARIOUS MEMBERS OF THE UK/HK DELEGATION THAT THEY EXPECTED TO BE ABLE TO PERSUADE THEIR DFA COLLEAGUES TO AGREE TO THE DEFINITION OF TERRITORY AS PER OUR MODEL TEXT: PRESUMABLY THIS IS WHY THEY REFUSED POINTBLANK TO DISCUSS THE ISSUE DURING THE NEGOTIATIONS. IF THIS IS SO IT WOULD, WE THINK, BE REASONABLE TO ALLOW THEM TIME TO TRY TO GET OUR PREFERRED TEXT FOR US. IF THEY SUCCEED THEN BOTH OF US WILL HAVE EQUALLY ACCEPTABLE DEFINITIONS OF TERRITORY IN OUR
RESPECTIVE ASA TEXTS.
6.
WE FULLY RECONGIZE AND SYMPATHISE WITH JAKARTA'S FRUSTRATION AT THE LACK OF PROGRESS ON THE DOUBLE TAXATION AND COPYRIGHT TREATIES. BUT IF WE PROCEED AS RECOMMENDED BY POST THERE IS A VERY REAL DANGER THAT YOU WILL RETAIN YOUR ASA TREATY DEFINITION AND WE WILL EITHER END UP WITH SOMETHING INFERIOR OR NO AGREEMENT AT ALL. AND THERE IS ALWAYS THE RISK THAT THE CHINESE MAY INSIST ON THE RENEGOTIATION OF AN UNSATISFACTORY TEXT.
7. IN THE CIRCUMSTANCES, OUR PREFERRED APPROACH WOULD BE TO ALLOW THE INDONESIAN DEPARTMENT OF COMMUNICATIONS AN OPPORTUNITY TO PERSUADE THEIR DFA COLLEAGUES THAT AN ASA WITH HONG KONG IS NOT
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