GRS600A
CONFIDENTIAL
DESKBY 28010OZ
FM F C O 271705Z MAR 80
TO IMMEDIATE HONG KONG
CONFIDENTIAL HK RECEIVED
A
PX.
No
TELEGRAM NUMBER 268 OF 27 MARCH.
J15.4
PERSONAL FROM CORTAZZI FOR GOVERNOR.
BY 3.053
REGISTRY
Action Taken
YOUR TELNO 425: AIR SERVICES: CAA DECISION.
1. THE REACTION IN HONG KONG HAS BEEN REFLECTED HERE. SWIRES HERE
HAVE MADE CLEAR THEIR INDIGNATION TO US( I HAVE EXPRESSED MY SYMPATHY). WE HAVE BEEN CONSIDERING HOW THE DAMAGE CAN BE UNDONE OR LESSENED.
2. IT IS NOT AN EASY PROBLEM. THE LEGAL CONSIDERATIONS ARE COMPLEX.
ONCE CPA HAVE LODGED THEIR APPEAL TO THE SECRETARY OF STATE FOR
TRADE MR NOTT'S POSITION WILL INEVITABLY BE CIRCUMSCRIBED BY THE
RULES OF THE APPEALS PROCEDURE. IF HE WISHED TO REVERSE THE CAA'S
DECISION HE WOULD HAVE TWO ALTERNATIVES:
A) TO DO THIS BY HIS DECISION ON THE APPEAL :
OR B) TO ISSUE DIRECTIONS UNDER SECTION 4(3) OF THE CIVIL AVIATION ACT 1971.
BOTH COURSE PRESENT DIFFICULTIES. THERE WOULD BE PROBLEMS IF MR
NOTT APPEARED IN HIS QUASI-JUDICIAL CAPACITY TO BE TAKING ACCOUNT
OF REPRESENTATIONS BY ANYONE NOT PARTY TO THE APPEAL PROCEEDINGS AND INTRODUCING ELEMENTS WHICH WERE NOT INCLUDED IN THE ORIGINAL
EVIDENCE AT THE CAA HEARING. ON THE OTHER HAND, A DIRECTION BY MR NOTT WHICH OVERRODE THE APPEALS PROCEDURE, EITHER BEFORE HE CONSIDERED THE EVIDENCE OR AFTER HE HAD TAKEN A DECISION WOULD
OBVIOUSLY INVITE CRITICISM AND COULD ONLY BE JUSTIFIED ON THE
STRONGEST GROUNDS.
3. AT PRESENT WE BELIEVE THAT THE BEST COURSE WOULD BE TO INVITE
LORD CARRINGTON TO WRITE SOON TO MR NOTT TO UNDERLINE THE POLITICAL
AND COMMERCIAL IMPLICATIONS OF CAA'S DECISION BEFORE HE BECOMES LOCKED INTO THE APPEAL PROCESS,
FOR THIS WE WOULD NEED YOUR ASSESSMENT OF THE IMPLICATIONS FOR
ANGLO-HONG KONG RELATIONS E.G.
A) RISK OF A REACTION AGAINST PURCHASES OF BRITISH EQUIPMENT
B DANGER OF SOURING POLITICAL RELATIONS, POSSIBLY AFFECTING THE
ATMOSPHERE FOR THE GARRISON TALKS AND RENEGOTIATION OF THE
MULTI-FIBRE ARRANGEMENT.
C) REGIONAL CIVIL AVIATION IMPLICATIONS.
CONFIDENTIAL
/4. WE MUST
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