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FAR FROM BEING CRITICAL OF THE CAA DECISION, BCAL WAS WELCOMED ON THE HONG KONG LONDON ROUTE AND WILL DOUBTLESS REPEAT THIS LINE IN LONDON, IT IS IMPORTANT TO SET THE RECORD STRAIGHT. AT ANNEXE A ARE EXAMPLES OF THE PROTESTS WHICH THE CAA DECISION PROVOKED, THROUGH THE RADIO AND THE PRESS. IT IS NOTICEABLE THAT THE SPREAD OF PROTEST INCLUDED THE COMMUNIST PRESS AS WELL AS ALL SECTIONS OF THE BUSINESS COMMUNITY, ANNEXES B AND C LIST
EXAMPLES OF THE LATTER.
THERE WAS ALSO A STRONG REACTION FROM LEGISLATIVE AND ELECTED BODIES, THE HEUNG YEE KUK (THE ELECTED ADVISORY BODY IN
THE NEW TERRITORIES REPRESENTING THE CHINESE INHABITANTS) WROTE PROTESTING TO THE FOREIGN AND COMMONWEALTH OFFICE, ON BEHALF OF THE 68,000 PEOPLE WHO HAVE LIVED IN THE NEW TERRITORIES AND FLY ANNUALLY LONDON/HONG KONG/LONDON.
MR. H. CHEONG-LEEN AN ELECTED URBAN COUNCILLOR,
WROTE SIMILARLY PROTESTING ON BEHALF OF THE HONG KONG CIVIC ASSOCIATION. THE HON. O.V. CHEUNG, Q.C., THE SENIOR MEMBER OF THE LEGISLATIVE COUNCIL, SPOKE IN THE BUDGET DEBATE POINTING OUT THE DANGER TO BRITISH HOPES OF SELLING GOODS TO HONG KONG ARISING FROM THE LOCAL REACTION TO THE DECISION UNLESS IT WERE TO BE REVERSED. HE QUITE OBVIOUSLY HAD THE OVERWHELMING SUPPORT OF MEMBERS IN THE CHAMBER WHEN HE SPOKE.
COPIES OF THESE REPRESENTATIONS AND OF THE SPEECH OF MR. O.V. CHEUNG, Q.C. ARE IN ANNEX 'D'.
THE DIVERSITY AND SIZE OF THE REACTION PRECLUDE ANY POSSIBILITY THAT IT WAS ENGINEERED OR ORCHESTRATED BY CATHAY. THESE COMMENTS ON THE AUTHORITY'S DECISION WILL BE MILD IN COMPARISION TO THOSE ON A FINAL DECISION TAKEN BY A MINISTER IF ADVERSE. IT IS MOST UNHAPPY THAT THOSE PARTICULARLY OUTRAGED ARE THOSE WHO HAVE DONE THEIR BEST UNDER GOVERNMENT PROMPTING, TO BUY BRITISH AND PROMOTE THE BRITISH GOVERNMENT CONNECTION.
LIKELY EFFECTS ON TRADE RELATIONS
THE PUBLIC REACTION LEADS US TO FEAR THAT UNLESS THE CAA'S. DECISION IS REVERSED THERE WILL BE HARDENING OF PUBLIC OPINION WHICH WILL MAKE IT DIFFICULT TO TIP DECISIONS ON TENDERS IN BRITAIN'S FAVOUR AS HAS SO SUCCESSFULLY BEEN DONE IN THE PAST.
THE SECRETARY OF STATE HIMSELF ON HIS RECENT VISIT TO HONG KONG PUBLICLY SPOKE OF TRADE RECIPROCITY BETWEEN BRITAIN AND HONG KONG. HE WILL BE AWARE OF THE VALUE OF RECENT CONTRACTS PLACED BY BRITISH FIRMS FOR PROJECTS IN HONG KONG. THE SECRETARY
OF STATE WILL ALSO BE AWARE OF THE EXCELLENT PROSPECTS IN RESPECT OF FUTURE PROJECTS PROVIDED THE RIGHT CLIMATE PREVAILS.
CATHAY'S PURCHASE OF AIRCRAFT AT D.O.T.'S REQUEST
IT IS IRONIC THAT WHILST THE DECISION OF THE CAA IS FOUNDED ON AN EXPRESSED PREFERENCE FOR 240 SEAT DC10 AIRCRAFT RATHER THAN THE 415 SEAT BOEING 747, IT WAS AS A DIRECT RESULT OF THE INTERVENTION OF MR. HESELTINE WHEN A MINISTER IN FEBRUARY 1974
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