NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
(see separate
brief)
strong aviation reasons against giving themUAA
y rights at Hong Kong in new agreement that
may be negotiated, but we cannot entirely
exclude the possibility that it would be
politically difficult to refuse.
7. The Governor stremly opposes any move to terminate UAA's rights at Hong Kong Lat the next
round of talks with the Egyptians] He
maintains that the cancellation of UAA rights
The is likely to revive public criticism of U.K.s
restrictive control of traffic rights at Kai
Hamnevance
Tak and ince
in situazione H.M.G. makes no
contribution to the provision of facilities al kai Tak.
He also claims that the loss of UAA landing
fees will cest Hong Kong about £70,000 a
year.
8.
Consideration has been given to the
possibility that if at the next round of talks
UA's traffic rights at Hong Kong were with-
drawn, we could soften the blow for Hong Kong
by substituting KLM for UAA. It is however
impossible to predict the outcome of thesexs
roud of talks and there is always the
possibility that for political reasons we
might not wish to exclude UAA. We cannot
therefore, until nearer the timejgive the
Board of Trade a firm promise that we will
agree to refuse the Egyptians, even in order to
transfer some of their rights to the Dutch.
The possibility of such a deal has not been
he 16
discussed with the Governor. Should
therefore, raise the subject of UAA's rights at
Hong Kong, it is recommended that the Chancellor
(
should say that Hong Kong's views on this
and
jare well known/that OR
at