GR 800A
CONFIDENTIAL
IMMEDIATE
DESKBY GOVERNOR AND BTC HONG KONG 272359Z
CYPHER/CAT A
LAST
18
FM F C 0 271835Z
REF.
NEXT
REF
121
CONFIDENTIAL.
19
2
l'agreed with N. Hitch
1.3
DESKBY 272359Z (GOVERNOR AND BTC)
1974
TO IMMEDIATE GOVERNOR HONG KONG TELNO. 227 OF 27 FEBRUARY/AND TO BRITISH TRADE COMMISSIONER HONG KONG INFO PRIORITY BCARFE HONG KONG.
YOUR TELNO 248.
CHOICE OF WIDE BODIED AIRCRAFT BY CATHAY PACIFIC.
1. JOHN SWIRE, ADRIAN SWIRE AND JOHN BROWNE CALLED TO SEE SIR PETER THORNTON (SECRETARY AEROSPACE AND SHIPPING) AT THEIR OWN REQUEST THIS MORNING, WARRINGTON AND ROGERS WERE PRESENT.
2. THE VISITORS SAID THAT THEY HAD NO DEFINITE PROPOSITION TO PUT
FORWARD AT THIS STAGE. THEIR PURPOSE IN ASKING FOR THIS MEETING
HAD BEEN TO LET US KNOW HOW THEY VIEWED THE SITUATION AT PRESENT
AND TO BE SURE THAT THEY UNDERSTOOD THE GOVERNMENT'S INTEREST.
THE CHOICE BETWEEN THE DC10 AND THE TRISTAR WAS OF FIRST RATE IMPORTANCE FROM CATHAY'S POINT OF VIEW, SINCE A MISTAKE COULD BE DISASTROUS. THEY CONFIRMED THAT, AS REPORTED IN YOUR TEL. UNDER REFERENCE, THE CPA BOARD HAD AGREED TO DEFER A DECISION UNTIL THE NEXT BOARD MEETING ON 18 MARCH. THEY RECOGNISED THAT IF THE
DECISION THEN WENT IN FAVOUR OF THE DC10 AND IF DOUGLAS INSISTED
ON THE PENALTY MENTIONED IN PARA 2 OF YOUR TELNO 242 OF 22
FEBRUARY THEY WOULD BE DOLLARS U.S. 250,000 WORSE OFF THAN AT
PRESENT ALTHOUGH THIS WOULD STILL LEAVE THEM WITH MONEY IN THEIR
POCKET AS COMPARED WITH THE SITUATION WHEN WE INTERVENED AT THE
END OF JANUARY.
3. WE SAID THAT THERE WERE VERY IMPORTANT BRITISH INTERESTS AT STAKE
ON BOTH SIDES IN THIS DECISION. WE RECOGNISED THE IMPLICATIONS
FOR CATHAY. ON THE OTHER HAND LOCKHEED AND ROLLS-ROYCE CONSIDERED
THAT CATHAY'S CHOICE OF WIDE BODIED AIRCRAFT MIGHT WELL HAVE A
DOMINO EFFECT IN THE FAR EAST, ROLLS-ROYCE HAD ESTIMATED THAT
CONFIDENTIAL
/AS MUCH
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