-6.

on the cabotage route between Hong Kong and London

because the monopoly services operated by BA have

proved unsatisfactory and inadequate. It considers

that there would be advantages if one of the competitors

were a Hong Kong based airline, but is primarily

concerned that the competing airlines should be able

to demonstrate an ability to operate a full range of

scheduled flights in a manner which takes full account

of the needs of the travelling public in Hong Kong as

well as promoting tourism and travel between Hong Kong

and London. Such airlines should still satisfy the

licensing authority as to their competence and ability

to initiate and maintain a suitable standard of service.

13.

Government has already made representations

about the standard of service currently being provided

by BA.

These representations reflect the indignation

of the public and the Government itself, and there is

evidence with our instructions which gives weight to

these representations.

It is however unnecessary to

review that evidence here, because the issues should

be debated before the licensing authority.

14.

It is apparent from the provisions of the

Act read with the Guidance that if the question of

issuing a licence to a competing airline on the

London/lieng Kong route were determined as things stand

at present the applicants would be virtually bound to

fail unless BA consented to one of the applications

Part 1 (see especially Cmd. 6400 para. 7). If, surprisingly,

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