NOTE FOR FILE

COMMERCIAL IN CONFIDENCE

CATHAY PACIFIC

CC

Mr Jones

Mr Farrow/file

Im Stuart FLO✓ her Rogers CAZ

1 Mr Rogers and I met Mr Brown of Swires on 15 March to discuss the matter of the wide-bodied aircraft orders. Most of the content of discussion has been given in a telegram to Hong Kong or in a separate minute. But one point requires recording. I emphasised to Mr Brown that the sentence in my letter to him of 14 March referring to the attitudes of the present Government and the previous Administration dealt with the issues raised in the Hansard extracts enclosed with that letter and the general support HMG gives to Rolls Royce. The letter has to be read in exact context (as I am sure he appreciates) eg it is not possible to read into the letter that HMG supports Rolls Royce in producing the -524 engine because the policy statements from Hansard show that such support is conditional.

2 Mr Brown also mentioned that British Airways had offered to lease L10116 to Cathay on suitable terms although BAB's conditions had yet to be defined. Cathay approached them in December and only recently had a response.

Adamy

A WARRINGTON

AIR

MH R.502 Ext 4084

15 March 1974

44

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