CODE 18-77

SS 8/78

CONFIDENTIAL

Reference

63

Mr Williams

111am on J

RECEIVED IN REGISTRY 40. 51

- 6 JUN 1980

DESK OFFICER

The

HONG KONG/LONDON ROUTE:

CAA DECISTOBEX

PA

Aetion Teken

но

0216

1.

себ

se

I would be grateful for observations on Mr Burton's minute of 25 April. The following poitns strike me?

a) The handling of HMG's case. Apart from BTC's reluctance

to stir up a backlash against British exports, there is also the point that until Mr Nott has made his decision there is in a sense no HMG case. Indeed I feel strongly that the main point which should have been made and has not, is that the CAA are independent and that HMG should not at this stage be in the dock (any more than the Hong Kong Government should have been for the ATLA decision). After Mr Nott has pronounced however, and particularly if he decides unfavourably to CPA, the presentation of HMG's position will be extremely important. We may indeed have to get BTC to act for us, although we should not exclude the use of GIS Hong Kong in getting both sides of the case put forward.

b) I did not know that the Chinese Chamber of Commerce had

consulted Peking. Is this true?

28 April 1980

RD Clift

CONFIDENTIAL

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