CONFIDENTIAL
ANNEX.. A.
18 August, 1970.
K.L.M. and Hong Kong.
As you know the Dutch have rafood with us their long-standing request for traffic rights at Hong Kong for K.L.M. A encloco a copy of the Aide-Memoire left by the Netherlands Ambassador whom ho called on the Foreign and Commonwealth Secrotary on 31 July. Dr. Luns has left us th no doubt that this is a noquest to which his Government attaches major importance. They also have outstanding a separate request for traffic rights at Dubai.
a
I feel strongly that we cannot refuse both those requcoto and that we should now at least concedo Hong Kong. The roquest for traffic rights at Hong Kong has boon a long standing source of friction in Anglo-Dutch relations. The Netherlands Government have given us all the traffic nights we have asked for and aro alcarly looking to a new Administration for a sign that when wo say that our cajor interacts is in closer links with Europe we really moan what we say.
The Dutch are well awano that K.L.M. services would be wolcomed locally both at Hong Kong and Dubai. This makes it particularly difficult to refuse both since we should appear to bo protecting our own metropolitan interest at the expence of territorios for whose external relations we are responsible. The substitution of K.L.M. for United Arab Airlines could compensate Hong Kong for the locs of traffic, if we decide not to renew the rights there of the latter airline in order to connect
Mon. Michael Noble,
Presidont,
Board of Trado
/the present
CONFIDENTIAL