20 years and this was the first time that H.M.G. had intervened." Sir Peter Thornton after saying that "it was the Government's intention to stand behind the production of the RB211 engine" then "explained the importance H.M.G. attach to CPA's decision: firstly because of the deteriorating U.K. balance of payments position, secondly because of the need to keep employment going in Rolls, but mainly because other airlines in S.E. Asia
were also considering whether to order the L1011 or the DC10.
The D.T.I. put the potential Rolls market there at around £150 million and all this could well be influenced by CPA's decision." He ended by saying "while he appreciated the decision was important and difficult for CPA, they would not be putting pressure on CPA if they did not believe that the L1011 was a good aircraft." Contemporaneously, the Hong Kong Government was telegraphed and informed that " Cathay's choice of wide-bodied aircraft might well have a domino effect
in the Far East. Rolls Royce have estimated that as much as
£150 million of business for them over the next three or four
years might turn on Cathay's decision." At that time H.M.G. was seriously concerned as to the future both of Rolls Royce and consequentially of Lockheed.
(e) On 15th March 1974 the Chairman of Cathay minuted his directors arguing the pros and cons of the various aircraft, pointing out that "during discussions with the D.T.I. in
London
it has been made clear the great importance which the British Government attaches to CPA's decision "and giving
their reasons, and finally recommended that Cathay purchased the L1011 as H.M.G. had requested.
(f)
On 18th March 1974 the Cathay Board agreed so to do.