4
SECRET?
Since the Air Services Agreement provides
for the designation of only 1 United
Kingdom airline, it might well be
difficult to retain access for more than
one;
(iii) we would have to negotiate with the Chinese
for the retention of British Airways and British Caledonian's rights to carry traffic between Hong Kong and the intermediate
and beyond points on their London-Hong Kong
services. No doubt we should have to make
corresponding concessions at London to
CAAC;
(iv) British Airways profitable Tokyo-Hong Kong-
Johannesburg service could only survive if it could be accommodated (improbably) as part of a new roundabout service betwen London
and Hong Kong, for which the present ASA makes no provision. Again there would have to be
corresponding concessions to CAAC, if indeed the route could be negotiated at all;
(v) if as a result it was decided not to build the
new airport (see paragraph 8), the growth of air services would probably begin to be constrained by congestion at Kai Tak within 5-10 years.
Conclusion
13. HMG's requirement is to retain their civil aviation
rights under the Chicago Convention. This could be met by an
agreement making the UK responsible for the conduct of
7
SECRETS
/Hong Kong's