CONFIDENTIAL
AIR TRAFFIC RIGHTS
1.
As the Metropolitan power, the UK (Department of Trade)
controls air traffic rights in respect of Hong Kong. Because
of her geographical position and the distance from the United
Kingdom, Hong Kong is a strong bargaining counter in air traffic
rights negotiations. The Hong Kong Government argue that they
developed Kai Tak Airport almost entirely from their own
financial resources, and (although realising it is not possible)
hanker after full control of their own traffic rights.
2. In negotiations with third parties, the Department of
Trade act in the interests of UK airlines and of Cathay Pacific
Airways (CPA), the privately-owned Hong Kong-based airline.
CPA at present operate only on regional routes, but they wish
to expand their services to Eastern Australia and at an
unspecified date in the future may wish to fly to London.
3.
CURRENT ISSUES
The three main current issues are:
(a)
Scandinavian Air Services air traffic rights into Hong Kong.
This is the most contentious issue. For some years the
Scandinavians have wanted rights at Hong Kong. The Hong Kong
Government have repeatedly urged us to grant them. The last
round of talks were held in December, when at FCO insistence,
the Scandinavians were offered a once weekly route in each
direction Copenhagen/Hong Kong, south of the Soviet Union.
Although the offer was made principally for political reasons,
it was agreed interdepartmentally and in accordance with accepted
CONFIDENTIAL
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