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CONFIDENTIAL

SIR Y K PAO'S VISIT TO BRITAIN: JUNE 1986

(c) HONG KONG: CIVIL AVIATION: DRAGONAIR AIRLINES (DAL)

POINTS TO MAKE

1. Scheduled services to the PRC and the UK

Should be pursued in first

instance with Hong Kong

Government (HKG). Understand that DAL have applied to the

Hong Kong authorities for a licence to serve London, and a

decision is awaited. For PRC, it will be for HMG to

negotiate traffic rights on basis of recommendations from

Hong Kong.

The Department of Transport are lead

department.

2.

Non-scheduled (charter services to London

Director of

Should be pursued in Hong Kong. The Civil 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

on

Understand HKG have recently issued

have recently issued a statement

air transport policy. If DAL have any concerns about the

application of the policy they should pursue

this with

HKG.

CONFIDENTIAL

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