DSR 11C
CONFIDENTIAL
to deny CPA the opportunity to show they can compete
effectively. The removal of this particular grievance
would also make it easier for Hong Kong to accept any
sacrifices they may have to make in the contents of
air agreements with Malaysia and Chine, and indeed in
future.
3. The best procedure for achieving this end is
largely a matter for your Department. Our concern is
that it should not lead to a confrontation with Hong Kong.
or deny them a fair opportunity to make their case. We
would therefore be happy with the procedure put forward
in your submission of 29 May which would allow direct
discussions with the Hong Kong Government to continue. I agree
simply There could be disadvantages in leaving the matter to L
But if it were decided to do that it would the CAA. If however this procedure is to be used it will
be important to reassure the Hong Kong Government that
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CPA will be given the same consideration as any British
airline despite the wording of the Civil Aviation Act 1971.
could Is there any way in which this ean be arranged informally, perhaps with the agreement of the British airlines?
Althou
I recognise their opposition to CPA's entry into the
London route, I would have thought the British airlines
might be less suspicious of CAA hearings than of direct negotiations between your Department and the Hong Kong Government, & nught therefore, be prepared to agree to such arrangement.
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CONFIDENTIAL
Dd 0532000 400 M 5/78 HMSO Bracknell