TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 183

CONFIDENTIAL

HKK 18416

RECEIVED CA ESOBY NO. 51

- 2 APR 1980

DESK OFFICER INDEX

PEO

PA

мо

78.4

4

GR 450

CONFIDENTIAL

FM HONG KONG Ø10956Z APR 82

TO IMMEDIATE FCO

TELEGRAM NUMBER 471 OF 1 APRIL

INFO IMMEDIATE HONG KONG GOVERNMENT OFFICE LONDON

}

MIPT: CAA DECISION

see

1. DO NOT SUPPOSE THE S OF S WILL WISH TO GO OVER ALL THIS GROUND. FOR MY PART I SUGGEST HE MIGHT CONFINE HIMSELF TO WRITING:-

A) THAT THE GOVERNOR IS SERIOUSLY DISTURBED BY THE FORCE OF PUBLIC REACTION TO THE CAA DECISION TO DIVIDE THE ROUTE BETWEEN TWO UK AIRLINES AND NOT ONE UK (BA) AND ONE HONG KONG (CPA). REACTIONS HAVE ALREADY BEEN BAD, AND IF THE DECISION IS UPHELD THE GOVERNOR BELIEVES THEY WILL BE FAR WORSE THAN ANYTHING IN HIS EXPERIENCE, TEXTILES INCLUDED. THEY ARE ALSO LIKELY TO BE MORE SUSTAINED AS THE PUBLIC SEE THE BCAL PLANES AND THE PRESS PUBLICISE EVERY REAL OR IMAGINED DEFECT IN THE SERVICE WHEN AND IF ESTABLISHED. THE GOVERNOR SEES THIS AS A RUNNING GRIEVANCE LIKELY TO SPILL OVER INTO OTHER ISSUES IN THE RELATIONSHIP BETWEEN THE UK AND HONG KONG, THE LATTER, WITH MUCH EFFORT, HAS BEEN MADE INCREASINGLY SATISFACTORY AND MUTUALLY BENEFICIAL. THE REASON FOR THIS BITTERNESS IS THAT THE PUBLIC SEES A HONG KONG INTEREST (AND ONE OF WHICH THEY ARE PROUD) BEING SUBORDINATED TO A UK INTEREST

AND THUS EMPHASISING THE MORE ANOMOLOUS ASPECTS OF COLONIAL

STATUS.

B) THIS COMES AT A PARTICULARLY BAD TIME WHEN WE ARE ABOUT TO

RENEGOTIATE A DEFENCE COSTS AGREEMENT, AND LATER IN THE YEAR

IT WILL WILL MOVE INTO THE MULTI-FIBRE TEXTILE ARRANGEMENT. BE MOST UNFORTUNATE IF THE HONG KONG GOVERNMENT FINDS ITS ROOM FOR MANOEUVRE IN THESE MAJOR ISSUES RESTRICTED BY REACTIONS TO THIS RATHER ESOTERIC MATTER.

CONFIDENTIAL

/ C) THIS

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