TNAG-0377-FCO40-423-Defence-and-Oversea-Policy-Committee-review-of-UK-relations--1973 — Page 44

deterrent.

Under the old law we would have avoided

embarrassment, since Godber would never have come

here.

17.

We have discussed this further with the Law

Officers and the Home Office. We have agreed that

although Section 10 of the Hong Kong Ordinance is the

only major piece of Dependent Territory legislation

to which the rule now relates, any change should apply

to all Dependent Territories over whose laws I have the

power of disallowance. We have also agreed that any

change might apply only to a schedule of laws or

require my explicit concurrence before return. But

we have reached no agreement of principle. If we leave

the law as it is, it would probably be better not to

decide or announce this, until after the Prime

Minister's visit. But if we can make a change I

believe we should decide this before the end of the

year so that the Prime Minister can tell Executive

Council. This would have a marked effect.

AIR SERVICES

18.

Hong Kong build and maintain their own airport.

The UK controls the use of it, largely in the worldwide

interests of British Airways and, to a lesser extent,

of the Hong Kong airline CPA. This is a constant

source of friction.

19. The Government of Hong Kong have for some timo

been urging us, for their own political and commercial

reasons, to license a service to Hong Kong by the

Scandinavian airline SAS. Our continued refusal has

grown from a minor to a major issue. The DTI have

now agreed with the Governor to offer SAS a singlo

weekly service with reasonable compensation for

•