CR 7/951/7
CONFIDENTIAL
Extract from the Minutes of the 206th Meeting of the Trade and Industry Advisory Board, held at 2.45p.m. on Monday. 14th April 1980 in the Trade Industry and Customs Department.
UK Civil Aviation Authority's Decision on CPA's Application for a Licence for the Hong Kong/UK Route
(TIAB M/3/80)
15.
The Chairman stated that this subject had been included in the agenda at the request of several Members of the Board. A copy of the UK Civil Aviation Authority's (CAA's) decision had been distributed to Members under TIAB M/3/80. This was supplemented by a paper containing the text of a submission from the Hong Kong Government (HKG) to the UK Secretary of State for Trade (S of S for T), which was tabled for Members' information. Before inviting their comments the Chairman gave Members sone background information, including an explanation of the special nature of the HK/London route (which was a "cabotage" route), and described the events leading up to the CAA decision (a copy of a brief on the subject provided by the Economic Services Branch, is attached (Appendix 1).
16.
Elaborating on the Chairman's remarks, Mr. Taylor explained that the submission to S of S for T, referred to by the Chairman, would be made by HKG's solicitors in London in HKG's capacity as a party to the CAA hearing. The submission could not introduce any evidence that had not been taken into account at the hearing. The CAA had emphasised in their decision that it had been based solely on civil aviation arguments and had taken no account of political considerations. In support of CPA the HKG's submission attempted to show that in civil aviation terms the CAA had erred in its decision. It concluded by asking S of S for T either to vary the decision of CAA by licensing CPA on the HK/London route, or to. give the CAA a direction to do so.
17.
Mr. Taylor went on to say that under the UK Civil Aviation Act the HKG, as an overseas territory affected by the CAA decision, was also able to make a submission to S of S for T on the political aspects of the case. Economic Services Branch was coordinating the preparation of such a submission, which he said would, inter alia, emphasise the considerable and forceful reaction in the press and from industrial and commercial associations, to the CAA's decision not to license HK's 'national' carrier on the HK/London route, but to license another UK-based carrier. The submission would be supported by copies of the comments in the press and letters from the various associations.
18.
Members considered that the civil aviation arguments against the CAA's decision were well covered in the HKG's submission, and expressed their support for the action that had been taken. As regards the political submission, Members expressed the view that Hong Kong as a dependent territory of the UK appeared to suffer where its interests conflicted with those of the UK. In the matter of ESC textiles, e.g. Hong Kong was treated as a third country that had no constitutional relationship with the UK, a member of the EEC, but when it came to the matter of landing rights, Hong Kong appeared to be entirely in the hands of the UK. Given the UK S of S for 's recent remarks on the benefits to be derived from two-way trade, Members felt that the CAA's decision did not reflect the S of S's sentiments. The Board therefore advised the HKG should protest to HMG against the decision in the strongest possible terms.
CONFIDENTIAL