CONFIDENTIAL
like adequate weight when the grant of these traffic
rights is made by the DTI. People in Hong Kong
become emotional about the bartering away of traffic
rights there in exchange for advantages for BOAC
elsewhere. The situation has been greatly aggravated
jusal to assist financially with
by ouro fal
the development of Kaitak Airport. Proposals for inque by HMG for
navigational aids are to be put forward by the
Governor, but we are likely to have difficulty in
obtaining the necessary funds.
LL. 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
No
5. Hong Kong have complained that BOC's new fare
proposals are unfair to the Colony, and that BOAC
are taking advantage of their privileged position.
Hong Kong Telegram No
giving/details of their
complaints, is attached, together with FCO Telegram
which answers all their points in detail.
BOAC have made one concession in extending the perio
of validity of certain excursi/fares, and have also
undertaken to look urgently into the situation
whereby cheap fares are available to certain limited
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 airlines over traffic those ultimate desti-
nation 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 tanks taxo tiris issue.
2
CONFIDENTIAL
Х
On the
x
NOTHING TO BE WRITTEN IN THIS MARGIN
oint
бари
nalain where?
En
No comments yet.
Private notes are available after approval.