TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 277

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slightly the rate of increase this year, verall the programe

was still a very impressive one. It was agreed that it was

necessary for the Government to continue each year to reiterate

its plans for increased expenditure in this field.

Hong Kong Garrison

5. The Governor described his discussions with the Secretary of

State for Defence (see attached telegram and record of conversation).

He stressed his view that it would be impractical to expect British

Ministers to authorise any increase in real terms in the expenditure

they were already making on the garrison. He would do his best to

make this point in Hong Kong but he still expected difficulties,

for instance from Sir Y K Kan. I Cortazzi said that in his view

we must be prepared to support the Hong Kong Government in the

maintenance of a more than nominal contribution from the UK

Government although it was open for discussion whether the

right figure might be 15% of 20% or some ther level.

Air Services

of

6. It was agreed that no action was necessary on the question

of whether CPA or British Caledonian should fly on the London

route since the hearings of the CAA were adjourned to 25 January.

There would be an opportunity to discuss this with the Secretary

of State for Trade when he visited Hong Kong at the end of the month.

US/Hong Kong Textiles Agreement

7. The Governor expressed gratitude for Ministerial support but

it was agreed that, apart from our commenting on the American attempt to compare the bilateral Agreements with the US and the EEC,

HMG could do no more for the present.

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