TNAG-0329-FCO40-365-Briefs-for-UK-officials--visits-to-Hong-Kong-1972 — Page 15

CONFIDENTIAL

obtaining the necessary funds.

4. The present situation is that a ministerial decision

is awaited on whether to support the DTI's views or those

of Hong Kong.

Air Fares

5.

Hong Kong have complained that BOAC's new fare proposals

are unfair to the Colony, and that BOAC are taking advantage

of their privileged position. Hong Kong Telegram No 228,

giving details of their complaints, is attached. together with

FCO Telegram No 262 which answers all their points in

detail. BOAC have made one concession in extending the period

of validity of certain excursion fares, and have also under-

taken to look urgently into the situation whereby cheap fares

are available to certain points in South-East Asia, excluding

Hong Kong, at very low rates. These were introduced in order

to deal with excessive competition from certain European air-

lines over traffic whose ultimate destination was usually

Australia, and it is hoped that an equitable solution will

soon be found. It does not seem that Hong Kong have a serious

grievance on the air fares issue.

Hong Kong Department April 1972

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