TNAG-0249-FCO40-285-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 92

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might

...

the United Kingdom's bargaining position, on which maintaining the inter-

national rights of British airlines (including Hong Kong's) depends.

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wort eray bring adverse reactions to the dilution of value of their

existing rights, from such countries as Italy, Germany, France, Switzerland

or Australia whose airlines already serve Hong Kong, Hong Kong participates

in United Kingdom negotiations on scheduled service rights involving the colony,

for which other States can hold HMG responsible internationally as United

Kingdom territory under the Chicago Convention. Control there of charter

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flights is in Hong Kong's own hands. Apart from traffic rights, all States

party to the relevant multilateral instruments have rights for technical

landings by civil aircraft in Hong Kong.

30. Hong Kong has sought a financial contribution from the United Kingdom

for its civil airport development to accommodate jumbo-jets and supersonics. No decision banyol the cool lip klis.

This

refused because of the Colony's own interest in the development and

since it was able to bear the cost itself. If HMG wished to assist Hong Kong,

this might provide an opportunity Boo outside the field of the EEC negotiations, there might be a wish to re-examine

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this, though there are no existing funds available for a United Kingdom con-

tribution.

31. Another suggestion is that funds for investment in order to diversify

Hong Kong's industry might be found either from the Colony's large reserves or

from provision of aid from United Kingdom. The use of development aid to help

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a dependency as wealthy as Hong Kong is at present would clearly need special

justification and should be avoided if at all possible. However, up to now

Hong Kong has not, found difficulty in raising capital for investment, and has

not been short of foreign exchange. Diversification has not been limited by

lack of capital, but by her lack of natural resources and her social structure.

But if she invests in new industries, she will still require an outlet for

their products. The pre-requisite for continued investment in Hong Kong's

1.

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industry is primarily confidence in the stability of the colony (and it is

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