CONFIDENTIAL

grant rights to SAS (who have a stronger claim in aviation

terms than KLM) to further Hong Kong's interests.

5. This is one of three major issues on which we are at

present in difficulties with Hong Kong (the other two are

textiles and currency). We shall be discussing all three

problems with the Governor next week and will then prepare

a supplementary brief on the line the Minister might take.

Hong Kong and Indian Ocean Department

August 1972

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CONFIDENTIAL

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