Registry
No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
.In Confidence
CONFIDENTIAL
DRAFT
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CIVIL AVIATION
Traffic Rights for SAS
1.
The Scandinavians have recently renewed a request
for traffic rights at Hong Kong. It has been strongly
supported by the Governor, and equally strongly opposed
by the DTI.
2.
ancy
They
The DTI's case, briefly, is that, frequencies
granted to SAS will draw traffic away from BOAC.
argue that, when rights were granted to KLM, largely
as part of the price for Dutch support in the negotia-
tions for our entry to the EC, it was agreed that
rights for other irlines could be withheld indefini-
tely. They expect that the grant of rights to SAS
a
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would be followed by simil r request from other
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my SAFENA.
The Hong Kong case is based on the increased traf-
fic between Hong Kong and the Scandinavian countries,
and the need to develop tourism; and on their need for
Scandinavian goodwill in the context of their textile
negotiations with those countries. Underlying it, however, is the conviction that BOAC annually makes millions of pounds out of traffic rights at Hong Kong, but that the Colony's views are not given anything
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CONFIDENTIAL