TALKS on the dispute between Cathay Pacific and Australian national carrier Qantas over the Hong Kong-Sydney route stalled yesterday. Cathay had been expecting the Australian authorities to present the conditions for a renewal of the Hong Kong carrier's licence to fly in and out of Sydney from October. But a Cathay spokesman said nothing had been heard from the Australian Government or Qantas and, unless there was some contact today, there would be no progress until tomorrow's scheduled government-to-government talks in Hong Kong. Cathay is fighting a Qantas proposal to cut by about 60 per cent the number of passengers to Sydney as part of the conditions for renewing its licence. The restrictions were described as a crude attempt to pressure the Hong Kong Government into allowing Qantas access to more destinations on key Asian routes from the territory. The Government had proposed the imposition of a 50-per-cent payload limit on the number of passengers Qantas could pick up from the territory and carry through to intermediate destinations. Unless there is a change in the Australian position today, Cathay is ready to go to the Australian courts tomorrow to ask for a judicial review of the decision.