Brief No 10
MORNING 9 OCTOBER
MEETING WITH SECRETARY FOR ECONOMIC SERVICES
(Mr D G Jeaffreson)
-Kr Jeaffreson has responsibility for a wide range of subjects:
statistics, civil aviation, companies, energy, transport, tourism, trade and industry. We have little contact however, with one exception discussed below, not least because of the peculiar position in regard to the Department of Trade, Industry
and Customs, Mr Jordan is senior to Mr Jeaffreson but theoret- ically reports to him. In practice we believe he does not do s0. Other topics which do fall within Mr Jeaffreson field we have tended to take up with Er Haddon-Cave.
The only subject likely to be raised is the perennial one of Air Service Agreements. There are two problems: a fundamenti difference of opinion between the Department of Trade and the Hong Kong Government as to the control that the latter should exercise over Kai Tak, and a profound personal antipathy between är George Rogers of the DOT and Mr David Wong, Deputy Secretary for Economic Services, the to principle negotiators.
The only current talks where there is disagreement concern the Gulf/Hong Kong route. Gulf Air applied to fly regular services on this route but, since it forms a major portion of British Airways' principle cabotage trunk route, the DOT have been very loathe to agree to the application. Hong Kong, on the other hand, have supported Gulf's request since it would, in their view, lead to increased revenue for Hong Kong. They were also afraid that a refusal might lead to retaliation against Cathay Pacific's services to Bahrain. The position was complicated by the fact that Cathay Pacific, in defiance of DOT advice, gave an under- taking when seeking their permit to fly to the Gulf, that there would be no opposition to a future Gulf Air request to mount reciprocal services,
/The.