TNAG-2314-FCO40-3358-Air-services-between-Hong-Kong-and-Australia-1991 — Page 92

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YRTELNO 1257: U K/HONG KONG/AUSTRALIA AIR SERVICES

1. EVANS MET ELIZABETH BOSHER, ACTING SECRETARY FOR ECONOMIC SERVICES, ON 21 JUNE. HIS MESSAGE WAS SIMILAR TO THAT REPORTED IN PARA. 2 OF TUR ALTHOUGH HE WAS LESS FORTHCOMING ABOUT FLEXIBILITY

ON THE INTERPRETATION OF THE 1974 CMU THAN HE APPEARS TO HAVE

BEEN IN HIS MEETING WITH SUNDERLAND.

2. EVANS ALSO MENTIONED THAT THE AUSTRALIAN SIDE WANTED TO PURSUE REGIONAL MATTERS IN THE FIRST INSTANCE AND THAT THEY WOULD BE PREPARED TO MEET IN HONG KONG SOME TIME DURING SEPTEMBER OR OCTOBER. IT WAS LEFT THAT THEY WOULD MAKE THE RUNNING IN PROPOSING DATES FOR A RESUMPTION OF TALKS.

3. EVANS LATER MET SUTCH (DEPUTY CHAIRMAN AND MANAGING DIRECTOR) AT CATHAY PACIFIC AIRWAYS. THE REPORT RECEIVED FROM THE AIRLINE SUGGESTS THAT THIS WAS A NON-EVENT.

4. WE ATTEMPTED TO FOLLOW UP WITH THE LOCAL CONSULATE GENERAL BUT THEY PLEADED IGNORANCE PENDING INSTRUCTIONS FROM CANBERRA. HOWEVER THEY CONFIRMED TO ESB/ASNU THAT THE DTC ARE KEEN TO MAKE HEADWAY ON REGIONAL ISSUES AND WOULD LIKE TO DO SO BEFORE THE PART PRIVATISATION OF QANTAS. UNFORTUNATELY THE SAME CONTACT AT THE CONSULATE HAS TOLD CPA A SLIGHTLY DIFFERENT STORY, NAMELY, THAT WHILE THEY WANT TO SOLVE THE REGIONAL ISSUE THEY ALSO WANT TO PUT THE TRUNK ROUTE PROBLEMS TO BED AT THE SAME TIME.

5. GIVEN THE VARYING INFORMATION EMERGING FROM THE LOCAL CONSULATE WE HAVE CONCLUDED THAT WHILST EVANS MAY WELL SEE THE NEED TO BE POSITIVE HE MAY NOT YET HAVE SUCCEEDED IN BRINGING HIS OFFICIALS ON SIDE. WE ARE NOT, THEREFORE, EXPECTING ANY NEW DEVELOPMENTS UNTIL SOME TIME AFTER EVANS RETURNS TO HOME BASE.

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