TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 237

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Since the Air Services Agreement provides

for the designation of only 1 United

Kingdom airline, it might well be

difficult to retain access for more than

one;

(iii) we would have to negotiate with the Chinese

for the retention of British Airways and British Caledonian's rights to carry traffic between Hong Kong and the intermediate

and beyond points on their London-Hong Kong

services. No doubt we should have to make

corresponding concessions at London to

CAAC;

(iv) British Airways profitable Tokyo-Hong Kong-

Johannesburg service could only survive if it could be accommodated (improbably) as part of a new roundabout service betwen London

and Hong Kong, for which the present ASA makes no provision. Again there would have to be

corresponding concessions to CAAC, if indeed the route could be negotiated at all;

(v) if as a result it was decided not to build the

new airport (see paragraph 8), the growth of air services would probably begin to be constrained by congestion at Kai Tak within 5-10 years.

Conclusion

13. HMG's requirement is to retain their civil aviation

rights under the Chicago Convention. This could be met by an

agreement making the UK responsible for the conduct of

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/Hong Kong's