CONFIDENTIAL
AIR TRAFFIC RIGHTS FOR SAS TO HONG KONG
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General
In
1. Hong Kong is an important crossroads for air transport.
terms of international bargaining over air traffic rights, it is
therefore a valuable card in our hand. In deciding how to get
the best value from this card, we maintain a careful balance
between the interests of Hong Kong and of the United Kingdom.
2. 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. This tends towards
an "open skies" attitude. On the other hand, the requirements of
their strong and growing local airline (Cathay Pacific Airlines)
tends towards a more normal bargaining approach towards air
traffic negotiations.
So far, Cathay Pacific is a regional air-
line while British Airways operate the trunk routes.
Background to SAS Negotiations
3. SAS is the only major Western-European airline which has no
air traffic rights for Hong Kong. KIM, the most recent Western-
European airline to gain traffic rights, was given them for UK
political reasons at the time of our negotiations for entry into
the EEC.
4. For some years the Scandinavians, with Hong Kong Government
support, have been pressing for a trunk route Copenhagen-Hong Kong.
Their arguments have been political (the Hong Kong Government
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CONFIDENTIAL