TNAG-2312-FCO40-3356-Air-services-between-Hong-Kong-and-South-Korea-1991 — Page 12

CODE 18-77

Mr RAJ Bunten

HKD

Reference..

HONG KONG/KOREA, HONG KONG/SOUTH AFRICA AIR SERVICES

AGREEMENTS

1.

Please refer to your minute and draft letter of 27

November.

2.

I note what you say about Chinese difficulties with the ROK and South Africa. But should these by themselves be sufficient reason to postpone the start of the process of separation? If there are political risks to the UK and Hong Kong from this course of action, then we should of course weigh them up. But what are they?

3. These two routes are worth hundreds of millions of dollars to Hong Kong airlines. They need to be assured at an early stage about the continuity of rights on the routes beyond 1997 because of the relationship between such rights and decisions which have a long lead time eg airframe/engine purchase and fleet distribution. Can we not look more constructively at these two admittedly difficult items on the shopping list? I note that the draft work plan for the JLG flags up the importance of both sides working towards an early understanding to enable Hong Kong/ROK and Hong Kong/South Africa air services to go ahead. This is surely the correct approach.

Simon Lanett

S J LOVETT

Aviation and Maritime Department

WH MZ13 270 2623

3 December 1991

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