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One alternative way of proceeding would be to amend the
definition of "British airline", at least to the extent of
allowing dependent territory airlines to be treated on an
equal footing in respect of routes to and from their territory.
This is a point we
a point we are taking up
are taking up separately with the DOT as they
are proposing to amend the Act in any case to remove the
the distinction
between private and publicly-owned airlines. It is not yet clear
whether, even if such an amendment can be put forward, it would
be made at a time and in a form which would be helpful in the
present case. In any event it seems preferable on tactical
grounds not to link our proposals for a change in the Act to any
one particular application.
6. If we accept that the hearing is likely to go ahead under the
existing legislation without intervention by the Secretary of
State for Trade the question is what assurances if any we can
ask for from the DCT about the procedures after the CAA decision
is announced. There are appeal procedures (which are almost
certain to be invoked by one party or another) and the ultimate
decision then lies with the Secretary of State for Trade.
While the DOT are willing to point out to Hong Kong that it will
be open to their Secretary of State to vary the CAA decision,
whether on appeal or by a direction, as the CAA procedures are
quasi judicial they would strongly resist any suggestion that the
verdict should in effect be decided before the evidence has been
heard. We cannot in my view quarrel with this; nor does it close
It is quite possible that CPA will be granted a
Licence in any case. If they are not, an appeal is possible and it
will be open to our Ministers at that stage to draw attention to
any implications for our relations with Hong Kong including the
any options.
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