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CONFIDENTIAL

24.

AIR SERVICES (Brief No. 6)

HMG conduct negotiations for licensing scheduled

air services at Kai Tak on behalf of both Hong Kong

and the UK. This has caused problems in the past.

One point which may be raised is that Hong Kong want

to develop their contacts with Scandinavia and, from

this point of view, would like a direct service from

Copenhagen to Hong Kong. The Governor has agreed

that we should offer SAS a single weekly service, with

compensation for BOAC. We have done so.

There may

be agreement before the Prime Minister's visit. There

are other problems involving air services, especially

the implications for Hong Kong of the current Chinese

attitude towards the signature of an air services.

agreement with the UK.

for the visit to China.

This is covered in the briefs

Other questions are less

likely to be raised by Hong Kong.

25. Line to Take: It is in Hong Kong's interest

that the right to operate air services to Kai Tak

should be developed to our mutual advantage. Air

traffic rights are a matter of hard bargaining.

have been on balance successful in defending the

interests of Hong Kong as well as the UK.

26. REGISTER OF SHIPPING (Brief No. 7)

We

The DTI have been discussing for some time the

possibility el genarate Pister for Hong Kong th

would enable Hong Borg owners to transfer an accentabl

number of shirs to Long Kong from Flag of Convenienca

countries. A TI team has been visiting Hong Kong and

Japan to investigate questions of manning and safety

standards. Japen is involved because she builds most

of Flag of Convenience fleets and the UK has not

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ship.

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