11.
(4)
(5)
SECRET
Hong Kong contributes substantially to
sterling balances in London and to
British commercial and trading interests
generally. In particular the United
Kingdom obtains substantial benefits
from the use of air traffic rights.
through Hong Kong Airport as a
bargaining counter in obtaining
equivalent rights for British aircraft
in foreign countries.
When the pound sterling was devalued in
1967 Hong Kong suffered a total loss of
some £50 million.
On 23 March, the Secretary of State sent a
message, through the Governor, to the Unofficial
Members replying in detail to the points that they
had raised and stating that after very careful study
of their representations HMG regretted that they
felt unable to alter their views.
This
12. On 14 April the Unofficial Members sent a
further communication to the Secretary of State
expressing dissatisfaction with the reply sent to
their representations and raising further points.
13. On 21 May the Secretary of State sent a
further message to the Unofficial Members.
message stated that HMG still regarded a contribution
of £8.5 million per annum as the minimum to which
they could reasonably agree but that if the
Unofficial Members had any suggestions to make which
might achieve an equivalent contribution, HMG would
give them very careful study.
6-
SECRET
/14.
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