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-2.
in the last administration that CPA purchases 747s, with Roll-Royce
engines, rather than DC 10s which was their original preference.
6. CPA are nevertheless in a difficult position because they
originally applied for only 3 flights per week each way and have
implicitly accepted the agreement that there was not a market for
3 carriers on the route.
7. The CAA's decision has also caused strong resentment in Hong
Kong. It has been criticised in the Legislative Council by
Mr Oswald Cheung, the Senior Unofficial Member of the Council.
The decision is seen as inequitable and as an example of the UK
taking advantage of its constitutional relationship with Hong Kong
for its own benefit.
8. CPA are appealing to the Secretary of State for Trade against
the CAA's decision and the Hong Kong Government, who took part in
both hearings, will be supporting CPA. They will also be looking
to the FCO to put the political arguments, which cannot be used in
the formal appeal, to Mr Nott.
9.
The Secretary of State for Trade has two options if he decides
that the CAA's decision should be changed. He can either do this
in the normal course of the appeal procedure, or issue directions
to the CAA under Section 4(3) of the 1971 Civil Aviation Act if
he judges that there are factors not covered by the appeal procedure
but "
.....appearing
to affect the relations of the United
Kingdom with a country or territory outside the United Kingdom.'
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CONFIDENTIAL