BRIEF FOR MINISTER FOR TRADE'S VISIT TO HONG KONG
30 AUGUST - 5 SEPTEMBER 1980
LONDON/HONG KONG AIP SERVICES
BRIEF 9
POINTS TO MAKE (IF RAISED)
1.
Since Mr Nott's decision has been generally welcomed in Hong Kong the Minister for Trade is unlikely to encounter criticism. If questioned on the justification for four carriers on the route he could say that the Secretary of State was convinced by Sir Freddie Laker's contention that there was a large untapped market for this route if fares were pitched at the right level, and he could also refer to the passage in Mr Nott's statement to the House of Commons, announcing the decision, where he says that freedom to compete is one of the cornerstones on which the economic success of Hong Kong has been built.
BACKGROUND POINTS
2.
Until this year BA was the only carrier providing a direct service on the London to Hong Kong route.
3.
Earlier this year the Hong Kong Air Transport Licensing Authority (ATLA) licensed British Caledonian and Cathay Pacific (CP) to operate alongside BA but refused a Laker application.
4.
The CAA however licensed British Caledonian only to operate
on the route with BA.
5.
The Secretary of State on appeal decided to reverse CAA's
decision and licensed British Caledonian CP and Laker.