2
based in Hong Kong. A further point leading us to support the idea of an alternative supplied by a Hong
Kong airline is that we are not impressed by the British based scheduled alternative at present showing an interest, Skytrain. It would not cater for the full range of the market.
4.
So in addition to our informal exchanges with Ray Colegate of the CAA, we raised with George Rogers when he was last in Hong Kong the possibility of Cathay Pacific flying to London (even though the management of CPA can hardly be described as enthusiastic at the prospect). I would ddescribe the initial reactions of both Ray and George as neutral.
5.
The position we are in now is first that Ray would like to discuss with us what he describes as the interesting and complex issues involved. Second we have readily accepted George's view that much ground work needs to be done on the subject before it can be carried any further forward. We have drawn up with him a programme of work and allocated it between DOT, British Airways, Hong Kong Government and Cathay Pacific. When this programme is completed, George suggested third that the next step might be for the Hong Kong Government to take part in general preliminary discussions with those involved in London in, say, early to mid May. Because we want to progress with the least amount of damage to the many relationships involved, we strongly support the idea of such discussions before we encourage any airline formally to put forward a bid to the CAA and to our own. Air Transport Licensing Authority.
6.
As I have said, the purpose of this letter is to put our informal exchanges with the CAA and DOT onto a more formal basis. In future, if we may, we shall copy to you and to Commissioner London Office our correspondence on this issue with both the CAA and DOT. And I wonder if it would not be more appropriate for me to correspond direct with you rather than with them as far as setting up the meetings in May is concerned, the complication being that we are a little hazy here on the protocol between CAA and DOT.
You
doy
(D.G. Jeaffreson)
Secretary for Economic Services