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tell the Hong Kong authorities that these possibilities exist in theory; what they need is reassurance that they are realistic policy options. The British Government's control over rights to and from Hong Kong and their use as bargaining counters in air services negotiaions sensitive issues in terms of UK/Hong Kong relations. This makes it all the more necessary to handle the the question of rights on the London/Hong Kong route with particular care so that the outcome is seen to be fair to all concerned. If CPA and the Hong Kong Government are left with a strong sense of grievance it will be particularly difficult to resolve any differnece of view that may arise between CAA and the Hong Kong ATLA.
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4. We have some doubts about the suggestion in your draft that the authorities in Hong Kong could consult the British Government after the announcement of the CAA decision whether or not an appeal had been lodged. İf an appeal were pending would it be proper for the Secretary of State to take into account representations other than under Regulation 16(14) of the CAA Regulations 1972 ie . where he has decided to condult a territory (unless of course the territory is a body entitled to make representations under Regulation 16(6)) This is however a matter of domestic law on which we will be happy to accept your ruling. If it is up to your Secretary of State Fo decide to consult Hong Kong and not the other way round the draft telegram will require some amendment. I hope we can take it as read that he would wish to initiate
such consultations.
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