TNAG-0778-FCO40-982-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 132

R 245

IMMEDIATE

CYPHER CAT A.

FM HONG KONG 1001552

CONF

CONFIDENTIAL

CONFIDENTIAL

HEK 184/1

$1

1 0 APR 1978

DEBK OSI INDEX

RY

PA

¡AC:

inten

TO IMMEDIATE F C O TELNO 446 OF 10 APRIL 1978

INFO SEOUL, HONG KONG GOVERNMENT OFFICE LONDON.

DOT TELNO ALLOT 57 OF 5 APRIL: UK/KOREA AIR SERVICES,

197

SINCE CPA ARE QUITE RELAXED ABOUT THE GRANT OF STOPOVER RIGHTS, THE ARGUMENT USED BY DOT IS DIFFICULT TO FOLLOW UNLESS IT STEMS FROM BA OPPOSITION. DOT'S MISGIVINGS THAT THERE COULD BE AN IMPORTANT INTERACTION WITH GULF-HONG KONG TRAFFIC MAY OR MAY NOT BE SO, BUT WE CONSIDER THE PROPOSED SIX MONTHS TRIAL PERIOD PROVIDES AN ADEQUATE SAFEGUARD. IN OUR VIEW REFUSAL TO EXTEND THE TRIAL PERIOD ON THE GROUNDS OF ESTABLISHED HARM TO OUR OVERALL INTERESTS WOULD BE LESS PROVOKING AND MORE ACCEPTABLE TO THE KOREANS THAN OUTRIGHT REFUSAL OF THEIR REQUEST WITHOUT EVEN A

TRIAL PERIOD.

2. IN RECENT MONTHS THERE HAS BEEN INCREASING COMMENT, BOTH IN

THE ENGLISH AND THE CHINESE PRESS, IN THE WAY IN WHICH HONG KONG'S

TRAFFIC RIGHTS ARE BEING HANDLED. ALL OF THIS HAS BEEN CRITICAL

OF THE UK AND WE FEEL SURE THAT REFUSAL OF THE KOREAN REQUEST,

WHICH IS OF CONSIDERABLE INTEREST TO OUR TOURIST INDUSTRY, WOULD BE BOUND TO BECOME KNOW AND STIR THINGS UP AGAIN. IT WOULD BE

VERY DIFFICULT FOR US TO DEFEND REFUSAL OF EVEN A TRIAL PERIOD

OF OPERATION.

3. OUR CONSIDERED OPINION IS THAT THE POTENTIAL OVERALL BENEFITS

TO HONG KONG REPRESENTED BY THIS EXERCISE OUTWEIGH ANY POSSIBLE

LOSSES TO AIRLINES, AND WE WOULD BE GRATEFUL IF THE MATTER

COULD BE REVIEWED.

MACLEHOSE

FILES

HK & GD

MAED

FED

MR THOMAS

MR CORTAZZI

[PASSED BY COD]

COPIES TO

CONFIDENTIAL

HONG KONG GOVERNMENT OFFICE

LONDON