C
Mr
•Youde
PS MK/Royle
SAS HONG KONG
R
Mi Sturgt.
For further
Dr Goodfellow speak
Madu Cant
In
1. The attached letter from Mr Edwards to Mr Smith records
the first positive move by the DTI in recent months.
effect they have accepted the advice which we gave them last
year to offer SAS a single service a week on an acceptable
route. This meets Hong Kong's minimum political requirements
which they have confirmed to us.
2.
12/11
I suspect that Mr Edwards has ascribed to Hong Kong a
greater degree of agreement than in fact exists. Hong Kong
are not greatly interested in the compensation which the DTI
are still demanding. Substantial problems still lie ahead.
The Scandinavians have said that they will not be satisfied
with a single service; while BOAC will doubtless try to insist
on maximum compensation. The DTI have by no means accepted
our proposal that we should demand no more compensation than
is necessary to make it possible to describe this as an
aviation bargain.
3. Nevertheless this is a hopeful development. If the
Scandinavians turned down the offer of a single service (as
they well may) we can at least say to Hong Hong that we have
offered what they asked for and that it is the Scandinavians
who are being unreasonable. The demand for some compensation
will help the DTI vis-à-vis BOAC and in its worldwide air
/services
CONFIDENTIAL