20th March, 1980.
D.C. Bray, Esq., C.M.G., C.V.O., Commissioner
Hong Kong Government Office,
6, Grafton Street,
London, WlX 3LB.
Dear Denis,
Thank you for your sympathy over the most surprising and disappointing decision of the C.A.A. in the London case. We shall of course be appealing.
I personally find the decision very difficult to swallow. C.P.A. have of course been strongly discouraged by H.M.G. from making earlier application for the route, over a period of several years, and long before the U.K. independents evinced any interest in serving Hong Kong. There can be little doubt that it is this delay which has in the event cost us the route - unless the decision can in some way be overturned.
You will also recall that when C.P.A's re-equipment was being planned, a firm decision was taken to purchase the DC10. It was only because the U.K. Government urged us strongly to look again to this decision, and support British industry, that we did so and decided to purchase the Tri-star with its Rolls Royce engines. As a result British manufacturers have already benefitted to the tune of some £70M, and are assured of a further £10M per annum or so in the future.
All this appears to have been ignored. Indeed, it is somewhat ironic that the major factor in the C.A.A.'s decision to award the route to BCAL was the fact that BCAL, a U.K. independent, had gone ahead and purchased the DC10!
I have not commented in this letter on the aspect of the decision which are related to Hong Kong's constitutional position, of which I know you are fully aware.
/Cont'd.....