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4. IN VIEW OF THE ABOVE, THE SOLUTION SUGGESTED BY THE CAA FARES
GROUP APPEARS TO BE A NON-STARTER. IN ANY EVENT, IT IS THE
ARTIFICIAL IATA EXCHANGE RATE WHICH GIVES RISE TO MUCH PUBLIC MISUNDERSTANDING AND CONTROVERSY. APART FROM INCREASING INTEREST
IN THE LEGISLATIVE COUNCIL, WE ARE ALSO IN RECEIPT OF WRITTEN PROTESTS FROM THE SHIPPERS' COUNCIL AND THE AMERICAN CHAMBER OF COMMERCE. IF THE IATA EXCHANGE RATE IS NOT MODIFIED SOON, WE EXPECT TO BE UNDER CONSIDERABLE PRESSURE TO FOLLOW THE ROAD TAKEN BY SINGAPORE AND MALAYSIA. WE SHOULD THEREFORE BE GRATEFUL FOR URGENT ADVICE ON THE BEST WAY TO BRING ABOUT AN ORDERLY CHANGE.
5. YOUR TELNO.447 ALSO REFERS TO QUOTE CURRENT U.S-U.K NEGOTIATIONS
UNQUOTE ON U.K-HONG KONG FARES.
WE ARE UNAWARE THAT SUCH TALKS
ARE IN PROGRESS AND WOULD WISH TO BE REPRESENTED.
MACLEHOSE
[COPIES SENT TO CAD/DOT]
FILES MAED
HK & GD SEAD
N AM D MISS BROWN
MR MURRAY MR HALL
COPIES TO
MRS DENZA
MR COLEGATE
MR BUSWELL
LEGAL ADVISER
CAA SPACE HOUSE
"}
HONG KONG GOVERNMENT OFFICE, LONDON
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