2
On regional routes, the Hong Kong Government supports the company's interests against other foreign and Commonwealth carriers, subject always
to the understanding that the interests of BOAC and British aviation
generally must be taken into account. There would be modifications to this
general policy of support for CFA in cases where the interests of the
general travelling public might suffer, or in cases where the desirability of maximising traffic on international routes is considered to override
regional considerations.
5.
It is understood that the United Kingdom Government likewise supports the growth of CPA as a British regional airline. There have been many occasions where the interests of BOAC and CPA have clashod; but nor- mally, in the past, the British negotiating team, in conjunction with Hong Kong Government representatives, has sought a fair balance between the two in their negotiations with other Governments. There have, however, been exceptions to this rule, when the interests of the regional carrier have been relegated to second place after those of the major carrier and in one case, i.e. the Malaysia/Singapore negotiations the damage to CPA was extremely severe.
B. THE VALUE OF CATHAY PACIFIC AIRWAYS TO UNITED KINGDOM INTEREST3
6.
•
CPA is a British-owned company, 15% of the shares being subscribed by British Overseas Airways Corporation. Of the remaining 85% :
(1)
(ii)
(iii)
(iv)
21% are held by Butterfield and Swire (Hong Kong) Limited, (a Hong Kong company wholly owned by John Swire & Sons, the United Kingdom company). 30% are held by China Navigation (a United Kingdom company).
30% are held by Peninsular & Criental Steam Navigation. Company (a United Kingdon company). 4% are held by the Borneo Company Limited (a United Kingdom company).
((v) 15% are held by Ansett Transport Industries (an
Australian company).