9P5425 PRIORITY
CONFIDENTIAL
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CYPHER CATA
ÍT HONG KONG 2002002
CONFIDENTIAL
INDEX
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TO PRIORITY F C O TELNO 658 OF 26 MAY 1978
INFO BERNE, HONG KONG GOVERNMENT OFFICE LONDON,
UK/SWITZERLAND AIR SERVICES TALKS (6/8 JUNE).
RÖGERS)
See (301
THE LETTER (REF EB 22/45) FROM STANDEN TO LATHAM DATED 26 APRIL
REFERS.
1. AS WE HAVE SAID ON MANY OCCASIONS IN THE PAST, OUR DESIRE IS TO DEVELOP AND INCREASE THE AIR LINKS REQUIRED TO SUPPORT
OUR TRADING, FINANCIAL, COMMUNICATIONS, TOURISM AND OTHER INTERESTS, NOT CUT THEM BACK. WE BELIEVE THAT HONG KONG'S VIEWS
SHOULD NOT BE PLACED SECONDARY TO THOSE OF BA IN RESPECT OF A!R TRAFFIC RIGHTS IN AND OUT OF HONG KONG, SINCE. IT IS OUR AVIATION CONNECTIONS WITH THE REST OF THE WORLD WHICH ARE AT STAKE AND WE ARE THE SOLE PROVIDER OF THE AIRPORT AND THE ASSOCIATED FACILITIES WHICH MAKE THOSE RIGHTS EXERCISABLE. A CUT-BACK OF SERVICES SUCH AS IS NOW CONTEMPLATED WOULD INEVITABLY AROUSE SEVERE PUBLIC CRITICISM HERE OF HMG'S HANDLING OF OUR AIR-SERVICES ARRANGEMENTS, WHICH WE WOULD FIND VERY DIFFICULT TO ANSWER.
2. WE WOULD BE INTERESTED TO LEARN THE EXTENT AND THE NATURE OF
THE QUOTE DAMAGING COMPETITION WITH BRITISH AIRWAYS UNQUOTE. WSISSAIR IS THE ONLY AIRLINE PROVIDING SAME-PLANE SERVICES BETWEEN HONG KONG AND SWITZERLAND. BA WITHDREW THEIR SERVICES VOLUNTARILY AND, SO FAR AS WE KNOW, HAVE NO PLANS TO MOUNT COMPETING SERVICES. WE THEREFORE ATTACH CONSIDERABLE IMPORTANCE TO SWISSAIR AND THEIR CUSTOMERS, MANY OF WHOM ARE HONG KONG PEOPLE, CONTINUING TO ENJOY THE CURRENT FIVE DC-10 SERVICES TO HONG KONG.
3. SWITZERLAND IS A MAJOR TRADING PARTNER (TOTAL TRADE IS LARGER
THAN WITH ANY OTHER EUROPEAN COUNTRIES APART FROM UK AND GERMANY). THE FIGURES (WHICH INCLUDE LIECHTENSTEIN) ARE AS FOLLOWS (IN MILLIONS OF HONG KONG DOLLARS):
EXPORT
RE-EXPORT
IMPORT
TOTAL VALUE
1975 409.84
231.16
942.96
1,583.96
1976 662.74
172.00
1,139.78
1,974.52
1977
572.13
168.41
1,291.81
2,032.35
CONFIDENTIAL
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