TNAG-0863-FCO40-1073-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 172

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The basic principle to be observed is clear: the United Kingdom,

as the metropolitan power, controls Hong Kong's aviation rights - but does fo so in trust for Hong Kong as a separate ontity. Where there is a conflict of interests therefore, that control cannot properly be used to subordinate Hong Kong's interests to the UK's. Nor, in so far as Hong Kong's interests are identical with CPA's (which will usually, but not necessarily always, be the caso), should CPA's commercial interests be subordinated, without agreement, to BOAC's. In particular, it is not propar to allow an existing commercial privilege of CPA's to be eroded in order to gain an advantage for BOAC, save only with Hong Kong's full agreement that to do so is in the best goneral interests.

18.

This is not to suggest, of course, that the United Kingdom, in exercising control, is undor any obligation to favour Hong Kong or CPA interests unduly over the United Kingdom or BOAC intorosts. But both interests should be kept separate, where they conflict, and given equal woight.

19.

It is important that full opportunity be given to the Hong Kong representative to discuss the United Kingdom brief with the British dələ- gation prior to the commencement of talks with the aviation authorities of foreign powers. This should be done early enough to enable the following matters to be agreed at governmental level before the talks start :-

the content of the brief setting out the requirements of both British airlines;

(a)

(b)

the extent of the sacrifices to be madɔ, if necessary,

both by BOAC and CFA; and

(c)

the methods and tactics to be adopted.

20.

Advance discussions between BOAC and CPA should also be encouraged, to onable all concerned to isolate the areas of conflict and to agree, so far as possible, on the line to be taken by the British nogotiators.