TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 68

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MANAGEMENT IN CONFIDENCE

DEPARTMENT OF TRADE

1 VICTORIA STREET LONDON SWIH OET

TELEPHONE DIRECT LINE 01 215 3229

SWITCHBOARD 01 215 7877

M St E Burton Esq CVO MAED

Foreign & Commonwealth Office Gt George Street

London SW1

1

21 May 1980

Min Pydens

imals crome

As stringy.

Dear Michael,

We spoke briefly on the telephone about the future of the BCARFE post in the Far East.

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12/1

2 You may be interested to see the enclosed copy of a letter which John Steele has recently received from David Jeaffreson, Secretary for Economic Services in Hong Kong. One possibility we are considering in a preliminary way is to make the BCARFE post responsible for shipping as well as for civil aviation, and to involve the holder more with these industries in Hong Kong itself, notably on the shipping side. The Hong Kong Government's reaction is predictably cool, and I am not myself very enthusiastic about having an intermediary between the Whitehall Departments on the one hand and the Hong Kong Government and CPA on the other as far as civil aviation is concerned.

3 I would like to discuss with you in due course, perhaps in July, arrangements for seeking the views of the Heads of Post to whom Graeme Wilson reports on the case for and against retaining the BCARFE office. The question to be asked clearly will not be whether BCARFE is or is not a good thing, but whether the money could be used to better purpose in these hard times.

4 Meanwhile I should find it helpful if your Finance Department could provide a figure for the current cost of the total BCARFE operation, which as you know falls on the FCO Vote even though the holder of this post is seconded from the Department of Trade. I suggest that they should leave out of account costs specifically attributable to the Assistant BCARFE, since this post was abolished in the Spring when Bill Gauld returned to this country on completion of his tour and was not replaced.