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M J Morland Esq

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Dear Maut The graft

UK/SWITZERLAND AIR SERVICES AGREEMENT

Telephone Direct Line 01-217 5654

RY

Switchboard 01-217 3000

1 December 1977

UBA

INDEX

Thank you for your letter.of 10 November 1977.

184/375/1

* 8DEC 1977

As

I agree that the figures åre startling, and I attach, as requested, details as to how these were arrived at and an indication of the movement of the figures since 1967. you will see, the bilateral was in balance in 1967 moving slightly in the Swiss favour by 1972, a trend which continued in 1973, with the gap widening appreciably from 1974 with the introduction of much greater capacity on the Hong Kong route. Incidentally, I referred in my letter of 3 November to "four" services weekly to Hong Kong, this being an error for "five".

As to informing Hong Kong, George Rogers did this personally during his recent visit, and he will be letting us have an oral report of their reaction next week.

As regards the timing of an approach to the Swiss, we may have to have second thoughts about this: the emergence of the prospect of a long series of difficult negotiations with the Scandinavians

This is a may incline us to put off an approach to the Swiss. matter which I shall be discussing with George Rogers and I shall let you have our views as soon as possible.

ввіллесова

Любоми

(L F STANDEN)

100

RESTRICTED

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