CONFIDENTIAL

3. IN YOUR TELNO.10 OF 3 JANUARY 1979, YOU SAID THAT THERE WERE

STRONG OBJECTIONS ON POLICY GROUNDS WHICH WOULD NOT DISAPPEAR

ONCE YOU HAD RATIFIED THE U.K/CHINA ASA. ALTHOUGH WASHINGTON

ASKED FOR GUIDANCE AS TO THE NATURE OF THE STRONG POLICY OBJECTIONS

(IN THEIR TELNO.241 OF 18 JAN), WE DID NOT RECEIVE A COPY OF THE

REPLY. IT WOULD HAVE BEEN HELPFUL TO HAVE A SIGHT OF THIS TO

PROVIDE THE CONSIDERED VIEWS WHICH YOU NOW SEEK.

4. WE ARE ALSO CONCERNED ABOUT AIRPORT CAPACITY IN HONG KONG WHICH

AS YOU WILL BE AWARE IS EXPECTED TO LIMIT TRAFFIC BY 1985 IF NOT

EARLIER. ROUTEING OF SHORT SECTOR NON-TRAFFIC FLIGHTS THROUGH

HONG KONG WOULD REPRESENT A VERY INEFFICIENT USE OF CAPACITY AND

MAY HAVE TO BE RESISTED.

MACLEHOSE

FILE S

MAED

HK & GD

FED

N AM D

LEGAL ADVISERS

MISS BROWN

MR MURRAY

[COPIES SENT TO CAD/DOT]

[ALSO SENT BY BAG TO WASHINGTON

AND PEKING]

2

CONFIDENTIAL

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