布政司署
港下亞厘畢道
+.
**** OUR REF: (71) in CR 3/951/79
2
* YOur Ref.:
K. Colegate, ksq.
Civil Aviation Authority,
space liouse,
43-59 Kinsway,
London WC2B 6TE.
(68)
GOVERNMent secRETARIAT
LOWER ALBERT ROAD
HONG KONG
wilach 819.6
Mr u
12th June 1979
ра
HER 186/!
RECEIVED IN R... 10. 51
19 JUN 1979
DESK
INDO
937
Corion T
See
Thank you for your telegram No. 247 dealing with Hong Kong-ü air cargo reten. Your statement in paragraph 2 of the telegram that the CAA has no detailed knowledge of the trans-Pecific market or of the costs of carriers serving the route is causing us some concern.
2.
When I met with Cliff Paice and John Buswell in London towards the end of last year, they had urged the Hong Kong Government to support the then Flying Tiger filing because the CA/ thought it reasonable. I had been under the fira impression then that the CAA opinion had been formed as a remult of a study of the underlying economic justifications for the tariff increase. Certainly the line that the Hong Kong Government has been maintaining with the whippers' Council has been:-
3.
(8) we have no expertise on airline economics;
and conse uently
(b)
we rely mainly on the Cal 'c expert advico as to whether proposed increases are justified in the light of both airline economics and consumer interests.
If, as it now appears, the CAA is not in a position to go into the economic justifications for proposed tariff or rate increases on the trans-Pacific route, then 1 think we would find ourselves in a very vulnerable position viz-a-viz the shippers' Council and non Kong exporterɛ fenerally.
If the Car has insufficient knowledge of the market, would it be possitle to refer the matter to the Tariff Working Group provided for under Article 12 of Burmuda 117 It could possibly even meet in Hong Kong.
15.