CONFIDENTIAL

DRAFT LETTER

To:-

JR Steele Esq

Department of Trade

1' Victoria Street

LONDON SW1

Type 1 +

From

Mr Cortazzi

Telephone No. Ext.

Department

DSR 11

Thank you for your letter of 8 June about

air services to Hong Kong and for letting me

know your Minister's reaction to your submission.

So far as the substance of the question is

concerned our view is that CPA should be given

the chance to compete on the London route.

If we take our responsibilities towards Hong Kong

seriously there is no justification for denying

them this route in perpetuity. I have no doubt

that CPA services to London would spur BA to

improve their own record. The removal of this particu-

lar grievance would also make it easier for us to

deal with the problems that anne

arpive

problem

aik balance between BA and EPA-

on the regional routes.

The best procedure for achieving this end is

largely a matter for your Department.

:

Our concern

is only that it would be seen to be fair to Hong

Kbng.

Given the wording of the Civil Aviation Act 1971

it is understandable that the Hong Kong Government

have doubts about a straight forward application

from CPA to the Civil Aviation Authority and we would

be content with the procedure put forward in your

CONFIDENTIAL

/submission

Dd 0532000 800M 5/78 HMSO Bracknell

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