HKK 184/6
CONFIDENTIAL AND PERSONAL
Foreign and Commonwealth Office
Sir Murray MacLehose GBE KCMG KCVO Governor and Commander-in-Chief HONG KONG
London SW1A 2AH
2 June 1980
HONG KONG/LONDON AIR ROUTE: CAA DECISION
1.
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Akk 184/6
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RECEIVED IN REGISTRY NO. 51
03 JUN 1980
DESK OFFICER INDEX
PA
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73.6
REGISTRY Action Taken
We have, as you know, been working to impress upon the Department of Trade the political and economic implications of the Civil Aviation Authority's decision not to license Cathay Pacific Airways on the London route. We sent you personally a copy of the Lord Privy Seal's letter of 7 April to Mr Nott. Donald Murray passed to the Department of Trade the letters enclosed with yours of 29 March and we have fed in other significant representations which have come our way. Most recently the Secretary of State has written to Mr Nott endorsing the Hong Kong Government's separate submission on the political issues (your telegram No 669 of 22 May). I enclose a copy for your personal information.
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2. We are all agreed about the serious implications of the decision and the need, if possible, to get it altered. We will not let up and are seeing what more can be done in the light of your telegram No 703 to the PUS. However, it is only realistic to plan for the possibility that there will be no change and that Mr Nott will not be prepared to allow CPA on the route. We realise that the resulting resentment in Hong Kong would then be even greater than that caused by the initial decision. There obviously would be damage to relations between London and Hong Kong and, as you have pointed out, other major issues would be affected. We have been considering how we can limit the damage.
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AW 316
3 One aspect would be the timing of any visits from London which might be misplaced in the aftermath of an unfavourable decision. We will ensure that you are consulted about this. We have already been in touch with you about the Department of Trade's proposal that Sir Kenneth Clucas should go to Hong Kong after the British Airways inaugural flight. For the moment that project has been shelved and the Department of Trade now realise that it will need very careful consideration.
CONFIDENTIAL AND PERSONAL
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