ME 3ABA

CONFIDENTIAL

which are in order to other airlines.

to

It is of course up to the

Department of Transport to designate particular Hong Kong based

airlines on routes to Chinese cities. We understand that DTP are in

close touch with and sympathetic to Cathay Pacific Airlines'

interests.

5.

The Hong Kong agreement unfortunately gives no joy to Cathay

Pacific Airlines' wish to remain the only Hong Kong based airline.

In Section IX of Annex I reference is made to "airlines

Cin the plural] incorporated and having their principal place of

business in Hong Kong" being allowed to continue to operate after

1997.

CONFIDENTIAL

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