CONFIDENTIAL

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Mr D T K Wong

Government Secretariat

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EIVED IN REGISTRY NO. Date

1 1 APR 1979

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6 April 1979

INDEX No

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125

AIR CARGO CHARTERS

1. Since MAED, rather than HK & GD normally "leads" on aviation matters, I have been asked to reply to your letter CR 3/951/79 of 23 March. I also represented the FCO at the UK/US air cargo talks in London last week (25-28 March).

leader jus delegation. ay the cargo discussions 2. It is our firm policy to restrict all talks with the US on charters and air cargo liberalisation solely to the North Atlantic. We have always maintained that it is entirely for the Hong Kong Government to decide on their charter policy with the US, and indeed, with anyone else. In fact Jim Atwood raised the question of TIA's request to operate combination charters to and from Hong Kong with us last week. He seemed concerned that we might have advised you to turn down these charters. We explained that we had no locus in the matter, and indeed that since his approach was the first that we had heard of TIA's request, we had had no hand in your refusal.

3. We have no objections to the Hong Kong Government initiating charter talks with the United States, although we would obviously like to know of any policy changes which might arise from such talks. I am enclosing a copy of the outline agreement agreed last week. The final version will probably be finalised in Washington next month. You may care to draw upon it in any bilateral negotia- tions you may have with the US or any other country with whom you wish to arrange charter agreements.

4.

I am copying this letter to Patrick Williamson in Hong Kong and General Department, Nicholas Jarrold in North American Department, FCO and Ian Brown in CAIR4/DOT and Tom Stables in CAIR1/DOT.

CCNFIDENTIAL

G Hall

Maritime, Aviation and Environment Department

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