sat
se
designation policy reflects these realities. It is simply not
in the gift of the Hong Kong Government alone to distribute
additional rights to its carriers.
Such rights must be
negotiated government to government in what is often a difficult
and long drawn-out process.
Deprive strip
Furthermore, it is not the policy of the Government to
an existing carrier of its rights for no reason other than
to give a second carrier a piece of the action. An important
aspect of the policy, however, which must not be overlooked, is
the flexibility. to designate additional airlines where circumstances permit. As a result, and I hope that Mr. Sohmen
will bear me out, the Government has successfully obtained rights for Dragonair to serve points in Japan, Thailand and the
USA. We are in the process of seeking rights for the airline to
serve certain points in China which are not served by Cathay Pacific. And as Dragonair's plans evolve, we are in continual discussion with the airline on how best to seek rights for them
to other destinations in the region.
Comments on revenue proposals
Itrs. AZ.J
stet
se
Cap
se
I now turn to Members' comments on my revenue strategy
and proposals for 1988-89.
43.
I have listened with particular interest to Members'
views on my remarks that a measure of tax diversification, together with some rationalisation of existing indirect taxes, may well
well be a practical proposition in Hong Kong. In this regard, Mr. Sohmen suggested that I would be damned if I sought to broaden the tax base, and damned if I didn't From the
comments of some members on this issue, it appears that I am to
be damned anyway merely for suggesting such a possibility, and
for appearing to
to rock
brock the boat! a boat which Miss
Miss Dunn at
least accepts may be entering choppy seas in the medium term.
=
K
waters
16
/44.