CONFIDENTIAL
CALL ON MR BLAKER BY MR JOHN SWIRE AND MR ADRIAN SWIRE, CHAIRMAN AND VICE-CHAIRMAN OF JOHN SWIRE & SONS LIMITED RESPECTÍ VELY
CATHAY PACIFIC AIRWAYS
POINTS TO MAKE
[The Swire Brothers will presumably outline the terms of their appeal.
They are likely to make particular play with the point about Rolls-
Royce engines. They will probably also contest the CAA's argument
that 747s would be less appropriate than DC 10s for the route and
stress that as "Hong Kong's airline" they are in equity entitled to
an element of reciprocity. They will ask for FCO support in putting
pressure on Mr Nott.]
1.
Fully understand Cathay's point of view. Since the case is
subject to an appeal to the Secretary of State for Trade the Swires
will understand why comment by another Minister at this stage would
not be appropriate.
2.
The FCO role is a limited one. However, what you have said
will help us to consider all the aspects of Hong Kong's position
in this affair.
[If opportunity arises]
3.
What is Cathay's current view on the traffic which the route
will stand? Would a shared service with British Caledonian Airways
be feasible?
4.
Do Cathay see the decision affecting their services elsewhere
in the Far East?
5.
Press. I hope Swires will agree that nothing should be said
to the Press about this meeting. It would make it more difficult
for the FCO to help if this were given publicity. If anything should
get out, I suggest we simply confirm that you called and explained
Swire's views to me.
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CONFIDENTIAL
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