CONFIDENTIAL
reply to Hong Kong. They have explained that while their
Secretary of State has agreed in principle that the Act should
be amended to allow airlines with their principal place of
business in a dependent territory but controlled by UK interests,
to be treated as a "British airline", the amendment will not
appear in the draft Bill. This is partly because it goes beyond
the intentions of the amending Bill (in essence,
to do away
ˊ
with Government guidance the CAA currently contained in the Act)
and partly because DOT Ministers see some advantage in holding
the proposal in reserve so that they can show their flexibility
during the Committee Stage by having a Government amendment
ready. The DOT have however confirmed that their Secretary of
State is determined to see this amendment enacted.
cc
HK&GD
Legal Advisers
22 October 1979
M St E Burton
Maritime, Aviation and Environment
Department
CONFIDENTIAL