CO NUDENTTAL
CONFIDENTIAL
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10 5/14 D/MIN/ES/1/4
Polin-DIMMER
MINISTER OF STATE FOR DEFENCE Plus
Secretary of State for Trade
Enter
HONG KONG/UNITED KINGDOM AIR ROUTE
-MU. PONALD Miss Broa
ннесо
HKK 184/6
RECEIVED IN REGISTRY NO. 51
16 JUN 1980
DESK OFFICER
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AW 16
Francis Pym and I share Peter Carrington's koncern about CAA's decision to license British' Caledonian Airways for the Hong Kong/United Kingdom route, and the potentially baleful effects of that decision on the negotiations for a new Defence Costs Agreement. These negotiations are important and sensitive.
We are seeking from the Hong Kong Government a considerable increase in its contribution to
the cost of the garrison.
The outcome will depend largely
on our ability to persuade public opinion in Hong Kong that our proposals are fair and made in the right spirit. This is put at risk by the sharp reaction in Hong Kong to the CAA's decision, as Hong Kong Government officials have already indicated. We hope that you will give due weight to this in considering Cathay Pacific Airway's appeal.
2. I am copying this minute to Peter Carrington, Keith Joseph and George Younger.
:
12 June 1980
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