CONFIDENTIAL

Hong

risk of a contrary decision by the Hong Kong ATLA which could

effectively block any service by a second British airline.

Kong and General Department do not agree that the DOT should

remain "neutral" as suggested in Mr Roberts' letter, but

accept that as the problem may in any case solve itself the

question of Ministerial intervention can be considered after

the CAA decision has been announced.

7.

In the meantime there is no objection to a reply being

sent to Hong Kong telno 959 on the general lines proposed by

the DOT. As we have made some slight amendments to their

original text it should however be cleared with them again.

In sending the text to Mr Roberts, we could usefully clarify

i

a further point about the nature of consultations with the

Hong Kong Government while an appeal is pending (para 3 of

attached draft letter).

Anne Stoddart

17 August 1979

Miss A E Stoddart

Maritime, Aviation and

Environment Department

CC:

Mr Quantrill, HK&GD

CONFIDENTIAL

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