CONFIDENTIAL
LOND
CHA)
HKK 184
PRIVY RECEIVER 9:
15 APR 1980
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1J15.4
31
Foreign and Commonwealth Office
London SW1
PA
15
7 April 1980
HONG KONG/UK AIR ROUTE:
CIVIL AVIATION AUTHORITY DECISION
The decision of 17 March of the Civil Aviation Authority
(CAA) to license British Caledonian (BCAL) to operate on the
London-Hong Kong route, and to exclude Cathay Pacific Airways (CPA)
from it, is worrying. CPA are appealing to you against the
decision and I understand that the Hong Kong Government, who participated in the hearing, will make submissions in the appeal.
They also intend to make separate representations to you on aspects of the case which did not form part of the evidence placed before the Authority.
2.
There has been a very sharp reaction in Hong Kong, by no
means confined to those with a direct interest in CPA. The Governor
of Hong Kong is seriously disturbed by signs that many people see the decision as an example of Britain taking advantage of its
constitutional relationship with Hong Kong. He believes that if the
decision is upheld the tide of reaction could become stronger than any similar movement in his experience, including that over textiles. This continuing resentment, sustained as BCAL aircraft started to
The Rt Hon John Nott MP
Secretary of State for Trade
Department of Trade
1 Victoria Street
London SW1H OET
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