TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 32

CONFIDENTIAL

Brief No 9

SECRETARY OF STATE'S VISIT TO HONG KONG

FEBRUARY 1972

ΚΑΙ ΤΑΚ AIRPORT

DEFENSIVE

Points to make

1. The calls for financial assistance from HMG are such that they

can only be met on a system of priorities based on need.

Because of this

it is difficult for HMG to help Hong Kong financially with its

development problems. However, it must not be thought that HMG would

not be prepared to consider assisting Hong Kong in some appropriate

way if an urgent need for such assistance were to arise at some future

time and a specific case were put forward. Meanwhile, HMG are always

ready to assist Hong Kong in other ways whenever the opportunity to do

so arises.

2.

Traffic rights for foreign airlines in Hong Kong are a completely separate issue. We believe that our long term interest (and Hong Kong's)

is best served by our present policy namely, to grant such rights only

in exchange for rights in other countries for British airlines

(including of course Cathay Pacific Airways).

CONFIDENTIAL