RESTRICTED
Civil Aviation
9.
In October last year Sir Y K Pao acquired a 30% interest in Dragon Airlines (DAL) a newly established airline based in Hong Kong. DAL is rumoured to have powerful backers in Peking and the airline has ambitious plans to service a number of regional Chinese cities as well as London. Sir Y K wrote to the Prime Minister in November 1985 asking for the support of HMG for "this new Hong Kong venture". The Prime Minister's reply was non-committal and referred Sir Y K to the relevant aeronautical authorities in Hong Kong and the UK.
10.
DAL's ambitions have caused a number of problems for both the authorities in Hong Kong and the Department of Transport. Sir Y K will be seeing the Secretary of State for Transport on 19 March when DAL and the routes it wishes to operate are certain to be discussed. In the unlikely event that Sir Y K should raise his interest in DAL with Mr Luce I suggest that the Minister should refer to Sir Y K's forthcoming meeting with Mr Ridley and state that DAL's desire to obtain rights to serve China and the UK from Hong Kong is a matter for discussion with the Department of Transport and the relevant aeronat ucial authorities in Hong Kong.
You's Branz. Bi
BP. J Ashton
вр
г
Far Eastern Department
CC:
Mr Wilde, CRD MY Leeks, HKD
Mr Morgan, MAED
RESTRICTED
No comments yet.
Private notes are available after approval.