CONFIDENTIAL
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8.
respect of air service negotiations that route
concessions should be matched either in kind or
by financial compensation).
The Scandinavians accepted that the route offered, although
"commercially viable" was "commercially uninteresting" to SAS.
The talks broke down because of Scandinavian refusal even to
discuss a commercial quid pro quo. No date has been set for
their resumption.
Line to Take
9. Mr Blaker may like to point out that HMG having taken
cognizance of the arguments put forward by the Hong Kong
Government, had made an offer to the Scandinavians in Oslo just
before Christmas of a weekly service Copenhagen-Hong Kong in
each direction. The Scandinavians had accepted this was
said it
commercially viable but was commercially unattractive to SAS.
It had been impossible to reach agreement with the Scandinavians
on the conditions under which SAS might operate to Hong Kong
given the fact of Scandinavian refusal even to discuss the
question of what might be an acceptable quid pro quo. The
Governor had agreed that the Scandinavians should not be given
something for nothing. We therefore regret that on this occasion
no advance had been made.
10.
If Sir Y K Kan asks why HMG could not agree to a route via
the Soviet Union (SAS already fly to Bangkok via Tashkent,
Mr Blaker will wish to point out that to concede this would
almost certainly lead to strong Soviet pressure for Aeroflot to
/fly into
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CONFIDENTIAL