TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 207

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2.9.20.

Background Note for the Chancellor of the Duchy of

Lancaster

KLM and Hong Kong

The Governor's views on the admission of major

trunk carriers to Hong Kong are well known. He has

expressed the desire that as many as possible of the

major airlines who apply for traffic rights should be

admitted to Hong Kong. This is in pursuance of the

aim that Hong Kong should become a major centre of

tourism and communications in the Far East.

2. He will have been told of the details of the

present Dutch initiative by his political adviser

who has recently been in London and discussed the

It is possible that issue with Hong Kong Department.

the Governor will press for the admission of KLM to

Hong Kong. He has recently reminded us that he would also

welcome the admission of SAS.

3. The last Administration refused these rights to

the Dutch in March 1969. In his letter to the

Netherlands Prime Minister the then Prime Minister

said however that we would always be happy for a

solution to be found in the civil aviation context.

The Dutch then initiated a statistical review of the

balance of earnings under the bilateral air services agreement, in an attempt to prove that the excess earnings of U.K. carriers justified the grant to KLM

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