year. The Chancellor of the Duchy of Lancaster there-'

Core made and published a statement to the Council of

Ministers on 6 November that we could no longer accept

discrimination against Hong Kong, and would press most

resolutely for a change during the annual review in the

Autumn of 1974.

Possible Criticisms:

Unofficial Members, and the

business community,

will

Say that in discriminating

against our own colony we are sacrificing their vital

interests to our European policy.

Line to take (in public and with Executive Council and Legislative Council: The Prime Minister will wish

to emphasise that there was no chance of getting

agreement to a change in Hong Kong's favour this year;

AACSA for the and to reaffirm our determination to eliminatson of

discrimination against Hong Kong in the first annual

review.

8.

Mass Transit

9.

Section to be added].

bule word

Air Services. Hong Kong maintain and built their

own airport. HMG control the use of it, largely in the

world-wide interests of British Airways and to a lesser

extent of the Hong Kong airline Cathay Pacific

Airways (CPA). This is a constant source of friction.

The Hong Kong Government have been urging us, for their

own political and commercial reasons, to license a

service to Hong Kong by the Scandinavian Airline, SAS.

The Hong Kong Government agreed, however, that it is

to their advantage, no less than ours, to maintain the.

value of Hong Kong as a bargaining counter in

negotiations over air traffic rights, and that there is

/no

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