TNAG-0370-FCO40-416-Visit-of-Edward-Heath--UK-Prime-Minister--to-Hong-Kong--12-1-1973 — Page 12

CONFIDENTIAL

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Scandinavia and, from this point of view, would like a direct

service from Copenhagen to Hong Kong. The Governor has agreed

that we should offer SAS a single weekly service, with

compensation for BOAC. We have done so.

ment before the Prime Minister's visit.

There may be agree-

There are other

problems involving air services, especially the implications

for Hong Kong of the current Chinese attitude towards the

signature of an air services agreement with the UK. This is

covered in the briefs for the visit to China. Other questions

are less likely to be raised by Hong Kong.

25. Line to Take: It is in Hong Kong's interest that the

right to operate air services to Kai Tak should be developed

to our mutual advantage. Air traffic rights are a matter of

hard bargaining. We have been on balance successful in

defending the interests of Hong Kong as well as the UK.

REGISTER OF SHIPING (Brief no. 7)

26. The DTI have been discussing for some time the possibility

of a separate Register for Hong Kong which would enable Hong

Kong owners to transfer the registration of an accer table

number of ships to Hong Kong from Flag of Convenience countries.

A DTI team has been visiting Hong Kong and Japan to investigate

questions of munning and safety standards. Japan is involved

because she builds most of Flag of Convenience fleets and the

UK has not formerly accepted Japanese marine equipment without

exacting tests. To do so now could be harmful to UK

manufacturing interests.

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