CONFIDENTIAL

(B) CIVIL AVIATION

Hon. Sir Albert RODRIGUES: Hon. HLC. BROWNE

Secretary of State

Hon. H.J.C. BROWNE

Secretar of State

Hon. Sir Douglas CLAGUE Hon. Sir Y.K. KAN

Secretary of State

Hon. J.A.H. SAUNDERS Hon. H.J.C. BROWNE

Britain controls air traffic

rights at Kai Tak but Hong Kong has to pay the costs of development. A gesture by way of aid is called for.

Will look once again at this question. It will not be easy to provide aid for airport development as the conditions are rather rigid and aid is confined to non-profit making enterprises.

Contribution could be given towards

navigational aids.

This specific suggestion fr helping with navigational aids will be considered.

S.A.S. should be allowed to operate to Hong Kong which is trying to interest Sweden in joint ventures in Hong Kong. The Swedish Minister of Trade recently raised this question once again when

Sir Y.K. KAN was in Sweden, There seemed

to be a determination to keep the Scan- dinavians out of Hong Kong so far as air traffic righ s were concemed. This was bad for trade between Scandinavia and

Hong Kong.

Will have another look at this but

it will be difficult.

There should be better direct B.0.A.C.

(minimum stop) services between Hong Kong

and London.

CONFIDENTIAL

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