CONFIDENTIAL

171

Mr Murray

1. I have had a preliminary word with the Governor and his Political Adviser, Dr Wilson. They think it essential to have advice from their civil aviation experts before giving a definite view. I am therefore sending a telegram to Hong Kong seeking their comments to reach us first thing tomorrow.

2.

Dr Wilson's first reaction was that option A is only likely to be acceptable if there was a clear understanding that British Airways would be replaced by a Hong Kong airline on the Hong Kong- Without Peking route within a stated and relatively brief period. this condition the arrangement would be so unbalanced against Hong Kong's interests that it would probably be unacceptable to the Hong Kong Government.

Rukauden

13 June 1979

R JT McLaren

Hong Kong and General Department

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