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CONFIDENTIAL #R
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The Discussion
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3.1.
Mr. Wu opened the discussions by proposing that the existing Air Transport (Licensing of Air Services) Regulations should be reviewed, and that the revised regulations should include firstly; some procedural -mechanism for appeal against decisions and secondly, should allow the
Governor the power to give direction. The Chairman stated that Mr. Wu had defined exactly what was intended to be done, but he asked Members to consider and advise as to the reasons for having an appeal mechanism, and the scope of the directive power, to be given to the Governor, should this power be specific or absolute and he noted that United Kingdom Secretary of State was confined to such matters as national security or relations with overseas territories. He stated that having regard to Hong Kong's constitutional position our revised regulations would be subject to approval by the Secretary of State and they must be based on United Kingdom's civil aviation legislation which had been extended to Hong Kong.
3.2. tir. Cheong noted that the results of the licensing hearings for the Hong Kong-London route showed that the procedures were wrong in that the CAA did not consider the results of the Hong Kong ATLA hearings. The Chairman stated that other methods of licensing airlines for the route had been considered before hand. Initially it had been felt that direct agreement between United Kingdom and Hong Kong Governments would have sufficed to determine which airlines should be added to the route; a change of Government in the United Kingdom had seen a change of opinion with the new Government wishing to follow regulatory aviation procedures. It had then been hoped that a joint hearing could have been held to obtain a common opinion but this concept had been çorsidered unacceptable by the United Kingdom Government. The Chairman went on to point out that there was no common base for reference by the two authorities and that it was possible for both to come to differring conclusions within their own legal considerations. There was nothing in UK legislation to say that the CAA should consider the views of Hong Kong, nor was there anything in UK legislation to say that CAA should consider that one of the airlines concerned in the application was based in Hong Kong.
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3.3. After further discussions it was agreed that an appeal procedure was necessary to provide uniformity with United Kingdom legislation, and powers of direction were also necessary.
3.4.
Mr. Cheong remarked that when he and Mr. Ting had met Mr. Nott during the latter's recent visit to Hong i.ong, r. Nott had stressed the worth of British products and how Hong Kong would benefit from increasing its purchases from the United Kingdom. Hr. Cheong stated that he had attempted to help Mr. ett by pinpointing areas where UK exports could be increased. He went on to say that emotions on the airline licensing issue were now running high and this issue could well jeopardise any good work done by Mr. Nott with regards to trade with the United Kingdom. It was understood that this point had been discussed at a recent meeting of the Trade and Industry Advisory Board, at which fiembers had expressed strong views.
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