TNAG-0779-FCO40-983-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 166

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4. IN VIEW OF THE ABOVE, THE SOLUTION SUGGESTED BY THE CAA FARES

GROUP APPEARS TO BE A NON-STARTER. IN ANY EVENT, IT IS THE

ARTIFICIAL IATA EXCHANGE RATE WHICH GIVES RISE TO MUCH PUBLIC MISUNDERSTANDING AND CONTROVERSY. APART FROM INCREASING INTEREST

IN THE LEGISLATIVE COUNCIL, WE ARE ALSO IN RECEIPT OF WRITTEN PROTESTS FROM THE SHIPPERS' COUNCIL AND THE AMERICAN CHAMBER OF COMMERCE. IF THE IATA EXCHANGE RATE IS NOT MODIFIED SOON, WE EXPECT TO BE UNDER CONSIDERABLE PRESSURE TO FOLLOW THE ROAD TAKEN BY SINGAPORE AND MALAYSIA. WE SHOULD THEREFORE BE GRATEFUL FOR URGENT ADVICE ON THE BEST WAY TO BRING ABOUT AN ORDERLY CHANGE.

5. YOUR TELNO.447 ALSO REFERS TO QUOTE CURRENT U.S-U.K NEGOTIATIONS

UNQUOTE ON U.K-HONG KONG FARES.

WE ARE UNAWARE THAT SUCH TALKS

ARE IN PROGRESS AND WOULD WISH TO BE REPRESENTED.

MACLEHOSE

[COPIES SENT TO CAD/DOT]

FILES MAED

HK & GD SEAD

N AM D MISS BROWN

MR MURRAY MR HALL

COPIES TO

MRS DENZA

MR COLEGATE

MR BUSWELL

LEGAL ADVISER

CAA SPACE HOUSE

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HONG KONG GOVERNMENT OFFICE, LONDON

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