3
3.
CONFIDENTIAL
this in turn had affected all flights including
flights to the East. He agreed that the record
on the Australian route was not good and in fact
has called a special meeting of the British Airways
Board for Tuesday 27 July to discuss improvements
in time for the October schedules. He said
that the difficulties that they had formerly had
with engines had now been overcome and that the
present problem appeared to stem from lack of margin
at the points of turn-around. If a plane started
late it tended to fall steadily behind schedule
through missing its other slots.
6.
The Governor asked if there was any progress
on over-flights to South Vietnam. Mr. Stainton
was optimistic and said that they would probably
over-fly Danang. The Governor pointed out that
the Hong Kong Government had gone out of its way
to be civil to the Vietnamese but that the civil
claim by PanAm on Vietnam aircraft could cause
difficulty. Mr. Stainton thought that if this
problem could be overcome then this would help
British Airways in their negotiations for over-
flight. At present, circumnavigating Vietnam was
costing British Airways a lot of money.
The
Governor said that he would look into this question
on his return to Hong Kong.
4.
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7.
Mr. Stainton expressed his regret to the
Governor for the decision which had been taken at a
lower level for British Airways to get involved on
the regional flight to Brunei.
This had been
an embarrassment to him and he had taken remedial
action as soon as he heard of it.
8.
The meeting finished at 12.45 p.m.
i
1 à 10:27 ODE 18.77
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HILIL
Reference....
Mr Dart Economists Dept G 71D/G_7
HONG KONG:
CENTRAL MONETARY INSTITUTION
Cohied 6
piccod/s
15)
1. I think you will be aware of the discussion which took place at the meeting which Mr Cortazzi and others had with the Governor of Hong Kong on 20 July about the relationship between the Hong Kong Government andthe banks in Hong Kong. I attach, for convenience, a record of the meeting, paragraph 5 of which is relevant.
2.
The Governor said that he thought there was room for a report from Hong Kong on the steps which had been taken since Mr Tompkins of the Bank of England had reported in 1974 on the possible creation of a central monetary institution. I now attach a copy of a letter, dated 26 July, from the Governor to Mr Cortazzi, which is evidently the report which the Governor had in mind to send. I have discussed this briefly with Mr Stewart and we are inclined to suggest that no further action is called for. However, I should be grateful to know whether you have any comments.
2 August 1976
D.F. Millen
D F Milton
Hong Kong Department K 247
233 4381
GONKIDENTIAL