Air Services
(Brief No. >
The licensing of Airlines to use Kai Tak is a
perennial problem. Hong Kong pay for the airport
themselves, but HMG control its use. Hong Kong vent
to develop their contacts with Scandinavia and have asked us to license SAS to fly to Hong Kong. The Governor has now agreed that we should offer SAS a single weekly service,with reasonable compensation for BOAC. We have done so. There may be agreement before the Prime Minister's visit, but SAS may not be satisfied with a single service, and there may not be agreement on appropriate compensation.
Line to Take: The value of Kai Tak depends on an orderly pattern of air services agreements covering the world. There is no question of exploiting kat Tak
in the selfish interests of HMG. Discussions on the
possibility of a service for SAS to Hong Kong are
proceeding.
(For ExCo and LegCo only) In consultation with the
Governor we have offered to agree to a single weekly service for SAS to Hong Kong.
Discussions on how thin
can be fitted into the pattern of worldwide services and obligations are continuing.
Register of Shipping (Brief No. >
Negotiations for a Hong Kong Register of Shipping are unlikely to be complete before the Prime Minister's
visit.
Line to Take: Discussions are proceeding.
w/92
CONFIDENTIAL
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