TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 209

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(see separate

brief)

strong aviation reasons against giving themUAA

y rights at Hong Kong in new agreement that

may be negotiated, but we cannot entirely

exclude the possibility that it would be

politically difficult to refuse.

7. The Governor stremly opposes any move to terminate UAA's rights at Hong Kong Lat the next

round of talks with the Egyptians] He

maintains that the cancellation of UAA rights

The is likely to revive public criticism of U.K.s

restrictive control of traffic rights at Kai

Hamnevance

Tak and ince

in situazione H.M.G. makes no

contribution to the provision of facilities al kai Tak.

He also claims that the loss of UAA landing

fees will cest Hong Kong about £70,000 a

year.

8.

Consideration has been given to the

possibility that if at the next round of talks

UA's traffic rights at Hong Kong were with-

drawn, we could soften the blow for Hong Kong

by substituting KLM for UAA. It is however

impossible to predict the outcome of thesexs

roud of talks and there is always the

possibility that for political reasons we

might not wish to exclude UAA. We cannot

therefore, until nearer the timejgive the

Board of Trade a firm promise that we will

agree to refuse the Egyptians, even in order to

transfer some of their rights to the Dutch.

The possibility of such a deal has not been

he 16

discussed with the Governor. Should

therefore, raise the subject of UAA's rights at

Hong Kong, it is recommended that the Chancellor

(

should say that Hong Kong's views on this

and

jare well known/that OR

at