CONFIDENTIAL
Dr
П
Goodly
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNIN
PM VHK (74) 6
COPY NO 32
10.12.73
PRIME MINISTER'S VISIT TO HONG KONG
JANUARY 1974
AIR TRAFFIC RIGHTS
BRIEF BY DEPARTMENT OF TRADE AND INDUSTRY
for much
Hong Kong is an important crossroads for air transport the same reasons of geography and economics that make it important
as a shipping centre. In terms of international bargaining over air traffic rights, it is therefore a valuable card in our hand. 2 In deciding how to get the best value from this card, we
maintain a careful balance between the interests of Hong Kong
andof the United Kingdom.
3 Hong Kong itself has two different interests in this respect. The Hong Kong Government is anxious to increase the flow of traffic through its airport at Kai Tak because of the economic advantages that this confers on the colony notably earnings from Japanesc
and other tourists and the revenues of the airport itself.
tends towards an "open skies" attitude.
This
On the other hand, there
is a strong and growing local airline (Cathay Pacific) which both the Hong Kong Government and ourselves foster as a source of
foreign currency earnings and employment.
This tends towards
a more normal bargaining approach towards air traffic negotiations. 4 So far, Cathay Pacific has restricted its activities to East and South-East Asia, while British Airways operato the trunk
routes:
but there are some sectors on which they are in competition
CONFIDENTIAL