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The Rt. Hon. John Nott, MP, Secretary of State for Trade, Department of Trade,

1 Victoria Street,

London SW1H OET,

UNITED KINGDOM,

Chairman

26th March, 1980.

Dear Mr. Nott,

At a recent session of the Council, Members expressed their extreme disappointment over the decision of the British Civil Aviation Authority regarding the licensing of carriers on the London/Hong Kong air route. The exclusion of Hong Kong's own airline, Cathay Pacific, which has an excellent record of service both in terms of safety and efficiency, from participation in this route is a matter of deep concern to Council Members, having regard to the special relationship which has developed between Britain and Hong Kong over the years.

The improvement in two-way trade between the United Kingdom and Hong Kong is, as you know, high on the list of priorities of this Council and much resource has been and continues to be expended with this aim in mind.

Indeed, Sir, this was the burden of the message that I tried to convey as leader of the Hong Kong Economic Mission to the United Kingdom in September last year.

From the Hong Kong side, the manifestation of this special relationship has been amply demonstrated through purchases by the, Mass Transit Railway, the Kowloon Canton Railway and the major electricity generating companies. In addition, and of direct relevance to the current issue, Cathay Pacific have specified British engines to power their expanding fleet of wide-bodied aircraft.

The Council earnestly hopes that you will give full weight to Hong Kong's rightful claim when the Authority's decision comes up for review.

Yours sincerely,

7.4.

Y.K. Kan

Hong Kong Trade Development Council

Connaught Centre

Hong Kong

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