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owned subsidiary of Cathay Pacific called Hong Kong Airlines would
operate the Hong Kong/Shanghai route. The CAAC are unhappy with this
idea but have not explained their objections.
15. The DOT are reluctant to grant permits for CAAC to operate
services between Hong Kong and three other Chinese cities (Guangzhou,
Kunming and Tianjin). They fear the CAAC are using the Hong Kong/
Shanghai problem as a means of negotiating concessions on the trunk
route.
KAI TAK AIRPORT
16.
Kai Tak airport will need to be replaced by 1990 when it will have
become saturated. Consideration of an alternative site has been going
on for some years and the present preferred site straddles an island,
called Chek Lap Kok, to the north of Lantao Island. No firm decision
has yet been taken on the site but a final decision to proceed should
be taken by the end of 1982.
17.
Certain Hong Kong businessmen have suggested to the Chinese
authorities that the new airport should be built in China just north
of the border with Hong Kong. The Hong Kong Government, who had not
been consulted about these approaches, are not keen on the idea,
although some members of the Executive Council favour it. It would
raise very complex political and legal problems, particularly over air
services rights. The Chinese will have at some time however to be
brought in, even on the Chek Lap Kok proposal, because it is unlikely
that the finance for the project could be raised without some assurance
of the future of Hong Kong beyond 1997. There will also be a need in
the near future to discuss technical matters with them.
18.
ENTRY OF HONG KONG BRITISH-PASSPORT. HOLDERS TO WEST GERMANY AND AUSTRIA
Most Hong Kong British-passport holders subject to UK immigration
control and cannot therefore be deported to UK. Because of this,
Federal Republic and Austria require Hong Kong British-passport holders
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