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countries.

Without Hong Kong as bargaining

counter HMG could not maintain her worldwide

air services on their present scale. Furthermore

Hong Kong is denied the full benefits which it

seeks to derive from unrestricted usage of Kai

Tak by foreign aircraft because of HMG's

restrictive policy of granting such landing

rights on a reciprocal basis."

4.

It is our policy to grant rights at Hong

Kong, as at other air traffic points under our

control, only in exchange for rights for British

airlines (including the Hong Kong based airline

CPA).

5.

However we have recently acceded to a very

long standing request from the Netherlands

Government for rights at Hong Kong for KLM

without a quid pro quo in the civil aviation

field - but the circumstances were quite

exceptional. We have recently received a

similar request from the Scandinavian countries

on behalf of SAS. This is at present being

considered but it is most unlikely that we shall

be able to agree.

2.

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