TNAG-0843-FCO40-1053-Visit-of-Lord-Carrington--Secretary-of-State-for-Foreign-and-1979 — Page 69

CONFIDENTIAL

5.

for the Secretary of State to get involved in detailed dis-

cussions with Exco.

REINFORCEMENT OF THE GARRISON

(See Brief No 5)

BRITISH AIRWAYS

For civil aviation purposes, Hong Kong is considered a British ·Ù

airport and is the UK's most valuable bargaining counter after

London in negotiating air services agreements. There is some

resentment in Hong Kong that this asset is used primarily in

the interests of the UK, which do not always coincide with

those of Hong Kong. This resentment fuels criticism of British

Airways' service on the London-Hong Kong route where, at the

moment, they have a monopoly. British Caledonian and Laker

Airways have applied for licences to operate on this route,

and the Hong Kong based Cathay Pacific Airways are also likely

to do so. These applications will be considered by the UK

Civil Aviation Authority.

Hong Kong and General Department

22 June 1979

CONFIDENTIAL