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The fact that the programme is currently limited to three operators has not in practice restrained its rate of growth. It is clear that the current operators could cope with further growth. We would ourselves be delighted to allow Hong Kong operators into this market. But the Chinese have made clear that they would not allow this. We do not think that allowing Yazhou Tours to participate would in fact increase competition. As I explained in my letter, there are specific reasons why we are not enthusiastic about this proposal.
Yours
we
Ju.
(John Ashton)
Acting Political Adviser
CC:
C. Garrett Esq., UKREP, JLG Ms. Juliette Hannah, Peking
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