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CONFIDENTIAL

SIR Y K PAO'S CHEVENING WEEKEND: 13-14 SEPTEMBER 1986

(f) Civil Aviation: Dragonair Airlines (DAL)

Points to make

1.

Scheduled services to the PRC and Thailand

Should be pursued in first instance with Hong Kong Government

(HKG). For PRC and Thailand it will be for HMG to negotiate traffic

rights on basis of recommendations from Hong Kong. The Department

of Transport are lead department. Understand you are already

engaged in inter airline talks wilth Thai International.

2.

Non-scheduled (charter services to London)

The Director of

Civil

Should be pursued in Hong Kong. Aviation (DCA) Hong Kong has full responsibility for approving

charter services. HMG is not involved.

3.

Hong Kong Policies only help Cathay Pacific Airways (CPA) and

disadvantage DAL

If DAL have any concerns about the application of the policy they should pursue this with HKG.

CONFIDENTIAL

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