CONFIDENTIAL
Cathay
3. There are also internal Hong Kong complications.
Pacific Airways (CPA) have informed the Hong Kong Government that
they claim sole rights for any direct service between Hong Kong
and China on the grounds that they had taken over the previously
designated carrier Hong Kong Airways. Hong Kong Air International
(Sir John Clague's helicopter company) has also formally expressed
interest in a route between Hong Kong and Canton. The DTI will
have to sort out the respective claims. A Swiss Company Bodmer
Air Taxi has now written to the DTI seeking permission to operate
an air service between Hong Kong and Canton at the times of the
Canton Fair. We await the Governor's views on this, but we should
obviously prefer such a service to be operated by British or Hong
Kong carriers. A draft Air Services Agreement for transmission to
the Chinese in the near future is in course of preparation. The
DTI cannot yet forecast a date when substantive negotiations will
begin.
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CONFIDENTIAL