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conduct at the time of the hearing led to a travesty

of justice.

We have no reason to believe that the

Laker Airways 'application was less than fairly dealt

with in Hong Kong. The application was rejected by

the UK Civil Aviation Authority for essentially the

same reason. It would however in the view of the

Legal Advisers be unsafe to answer Sir Freddie's letter

without checking the facts carefully with Hong Kong.

It is also only fair to give the Hong Kong Government

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the chance to reply to the serious allegations made

against them. We propose therefore to send them a copy

of Sir Freddie's letter together with the proposed

draft reply, which we will clear with the DOT and

which the Hong Kong Government may of course wish to

amplify.

4.

It is possible that Sir Freddie Laker may not

realise that his allegations would be passed on to

Hong Kong as a matter of course. There is at the

moment another application from Laker Airways before

the Hong Kong Licensing authorities and he could take

the view that the Hong Kong Government would be further

prejudiced against him after reading his letter.

While the DOT accept that the Secretary of State does

not require anyone's permission to consult Hong Kong,

in these special circumstances they have urged us strongly to let Sir Freddie know what her are eli

is proposed. We would not intend to write to Hong

Kong until after Sir Freddie had received the attached

letter.

(16941) Dd.897300 250m 9/72 G.W.B.Ltd. Gp.863

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