TNAG-0369-FCO40-415-Visit-of-Edward-Heath--UK-Prime-Minister--to-Hong-Kong--12-1-1974 — Page 128

CONFIDENTIAL

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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNENT

PM VHK (74) 6

10.12.73

PRIME MINISTER'S VISIT TO HONG KONG

JANUARY 1974

AIR TRAFFIC RIGHTS

COPY NO

BRIEF BY DEPARTMENT OF TRADE AND INDUSTRY

REC RECIS

(91)

36 14. Xu

17 DELIWS

HKK 3/5+8/1.

Hong Kong is an important crossroads for air transport

for much

the same reasons of geography and economics that make it important as a shipping centre. In terms of international bargaining cver air traffic rights, it is therefore a valuable card in our hand. 2 In deciding how to get the best value from tuis card, we maintain a careful balance between the interests of Hong Kong

andof the United Kingdom.

3 Hong Kong itself has two different interests in this respect. The Hong Kong Government is anxious to increase the flow of traffic through its airport at Kai Tak because of the economic advantages that this confers on the colony notably earnings from Japanesc

This

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and other tourists and the revenues of the airport itself. tends towards an "open skies" attitude. On the other hand, there is a strong and growing local airline (Cathay Pacific) winch both the Hong Kong Government and ourselves foster as a source of

This tends towards foreign currency earnings and employment.

a more normal bargaining approach towards air traffic negotiations. 4 So far, Cathay Facific has restricted its activities to East and South-East Asia, while British Airways operate the trunk routes: but there are some sectors on which they are in competition.

CONFIDENTIAL