JR Steele Esq

Department of Trade

1 Victoria Street SW1

DSR 11

Type 1 +

From

MR CORTAZZI

Telephone No. Ext.

Department

1. 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.

2. 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. The continuation of the BA monopoly

seems to me unjustifiable. The Hong Kong travelling

public are entitled to an effecient and punctual service.

This they have not been getting. BA have been given every

opportunity to improve their service and have repeatedly

promised to do so. Yet it continues to be inadequate.

or compchlers A competitor would be likely to provide a better service

and at the same time spur BA into making improvements.

CPA

is not of course the only possible competitor and I under-

stand BCAL have now formally applied for the route. If

we take our responsibilities towards Hong Kong seriously

we must however recognise that CPA has a natural right

to the route and I believe it would be unnecessarily

damaging to our relations with Hong Kong for us to continue

L. ☀.

CONFIDENTIAL

/to

De

12000 800M 5/78 HMSO Bracknell

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