CONFIDENTIAL
Brief No 6
4
In conformity with past policy of trying to avoid (other than exceptionally) competition between British airlines on the same international routes, we have so far as possible avoided duplication of services by BA and CPA on routes into and out of Hong Kong. On the whole the Hong Kong Government have gone along with this though they have on occasion fretted when this appears to have denied opportunities to CPA. If the question of greater opportunities westward for CPA is raised, the Secretary of State might say that of course his officials would be prepared to consider any reasonable requests put forward, but if CPA is going to venture into more competition with UK based airlines it must expect UK based airlines to venture into competition with CPA on routes which until now have been CPA's preserve.
5 Hong Kong officials are more likely to raise with Secretary of State the removal of some of the restrictions placed on services by European airlines into Hong Kong (the absence of services by SAS has been a frequent bone of contention). Our general policy has always been not to give away rights when there is nothing offered that we want in return. If this is raised Secretary of State might say that if there is any particular case where Hong Kong feel they are being disadvantaged then of course he would be prepared to have his officials look at it.
B London/Hong Kong Route Applications
Line to take
6
It would be inappropriate for the Secretary of State to comment on the outcome of the CAA Hearing since almost certainly there will be an appeal to him after the CAA have come to their decision on the applications currently before them from CPA, BCAL and Laker Airways. The Hearing is expected to be completed by the end of January and the CAA's decision announced in mid-February.
Background
It
7 The Hong Kong Air Transport Licensing Authority have licensed both CPA and BCAL to operate scheduled services on the London/long Kong route, in addition to British Airways, the only British scheduled operator on the route at present. There is no appeal against the ATLA's decision. The CAA began its hearing in mid- December and will resume on 25 January. Hong Kong feel strongly that CPA start the CAA hearing under a severe handicap because of the definition of "British Airline" in the Civil Aviation Act, 1971. has been made clear to them that the CAA is not unmindful of the position; the CAA have exercised their discretion and will hear the Hong Kong Government in the Hearing. If the CAA decision should go against CPA, they can appeal to the Secretary of State and the long Kong Government can make such representations to the Secretary of State as they choose. The Secretary of State could assure them that should this arise he would give full weight to whatever reprosent- ations were made.