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CONFIDENTIAL McLaren
My HKOGD
FM HONG KONG 0 803112
CONFIDENTIAL
* One har to admire HK'S check. As they know well it took several years & personal
o
328
TO PRIORITY F.C.0 TELNO.702 OF 8 JUNE 78, intervention by the then PM
INFO SEOUL, HONG KONG GOVERNMENT OFFICE LONDON. to get KLM in, and
oh
SERVICES is still a raw wound
YOUR TELNO.492: U.K/KOREA AIR SERVICES Y CASE)
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for the D.O.J.
81%
MR Morland
1. THE OBJECTION TO APPROVAL OF THE KOREAN PROPOSAL APPEARS TO
STEM FROM A PRINCIPLE THAT AIR-SERVICES RIGHTS CAN ONLY BE
CONCEDED IN EXCHANGE FOR OFF-SETTING AIR-SERVICES ADVANTAGES, AND THAT NON-AVIATION ISSUES (IN THIS CASE THE ADVANTAGES THAT
WOULD ACCRUE TO THE HONG KONG ECONOMY) CANNOT FORM PART OF THE
Soe (332) 1697 EQUATION.
2. WE HOPE IT IS NOT BEING SUGGESTED THAT AIR-SERVICES PRINCIPLES
HAVE ALWAYS GOT TO BE ADHERED TO EVEN WHEN TO DO SO WOULD BE AGAINST THE WIDER PUBLIC INTEREST. CERTAINLY THERE HAVE BEEN
DEPARTURES FROM PRINCIPLES IN THE PAST. FOR EXAMPLE. H.M.G GRANTED KLM A SERVICE TO HONG KONG IN RECOGNITION OF NETHERLANDS'
SUPPORT FOR BRITAIN'S ENTRY INTO THE E.E.C. THEREFORE WE CONSIDER THAT WE SHOULD NOT BE INFLEXIBLE WHEN IT IS DETRIMENTAL TO THE
WIDER PUBLIC INTEREST.
3. APART FROM THIS CONSIDERATION, AND FROM THE ARGUMENTS EXPRESSED
IN OUR PREVIOUS TELEGRAMS, WE BELIEVE THAT THERE ARE IN FACT OFF-SETTING ADVANTAGES EVEN IN AIR-SERVICES TERMS. CUTRIGHT REFUSAL OF THE KOREAN REQUEST WITHOUT EVEN A TRIAL PERIOD COULD
REBOUND ADVERSELY IN OUR AIR-SERVICES RELATIONS WITH THE KOREANS. ALTHOUGH CPA ARE CURRENTLY CUT-EARNING KAL BY AROUND U.S DOLLARS ONE POINT FIVE MILLION PER MONTH AND ARE IN EFFECT OPERATING FOURTEEN SERVICES TOKYO/KOREA IN PLACE OF THE PERMITTED SEVEN, THE KOREANS HAVE NOT SOUGHT TO MAKE AN ISSUE OVER THIS. WE SHOULD
PREFER NOT TO GIVE THEM ANY MOTIVE FOR DOING SO. QUITE APART FROM THAT, OUR REFUSAL TO BE HELPFUL NOW WILL ALMOST CERTAINLY MEAN PAYING A PRICE FOR IT IN THE FUTURE.
4. WE THEREFORE REQUEST THAT FURTHER CONSIDERATION BE GIVEN TO
THIS ISSUE,
MACLEHOSE
FILES
MAED
HKJGD FED
MED
[COPIES SENT TO CADI DOT]]
MRMURRAY MRWEIR
CONFIDENTIAL
#kk 184/1
K RECEIVER METER KO. 51
14 JUN 1978
DHUC OFAGES
INDEX
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