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obtaining the necessary funds.
4. The present situation is that a ministerial decision
is awaited on whether to support the DTI's views or those
of Hong Kong.
Air Fares
5.
Hong Kong have complained that BOAC's new fare proposals
are unfair to the Colony, and that BOAC are taking advantage
of their privileged position. Hong Kong Telegram No 228,
giving details of their complaints, is attached. together with
FCO Telegram No 262 which answers all their points in
detail. BOAC have made one concession in extending the period
of validity of certain excursion fares, and have also under-
taken to look urgently into the situation whereby cheap fares
are available to certain points in South-East Asia, excluding
Hong Kong, at very low rates. These were introduced in order
to deal with excessive competition from certain European air-
lines over traffic whose ultimate destination was usually
Australia, and it is hoped that an equitable solution will
soon be found. It does not seem that Hong Kong have a serious
grievance on the air fares issue.
Hong Kong Department April 1972
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