Sir M MacLehose
File
Nick
18416
51
RELIVED IN REGISTRY RO.
13 NOV 1980
CONFIDENTIAL
DERK OFFICER
INDEX
REGISTRY
Action Tuken
11
in 18
716"
(112)
ATLA CECISION
We are seeing Mr Nott this afternoon. I understand you have been briefed by David Ford on the ATLA decision but there are some additional papers you should see.
1.
2. As I told you, Sir Freddie Laker has written to Mr Nott asking him to arrange for Laker Airways to be exempted from licensing in 13) Hong Kong in a similar way to British Airways. John Griffiths has B already given his views in Hong Kong telegrams Nos 1477 and 1478. Our legal advisers have been consulted by the Department of Trade and their views are in Mr Gardiner's letter of 12 November to DOT.
3. In summary, Mr Gardiner considers that BA's exemption may have been ultra vires. However, he takes the view that if it were
D(115
E
decided to exempt Laker it would still be preferable to do so in the first place by amending the Hong Kong Regulations. John Griffiths prefers an Order in Council but Mr Gardiner does not for the reasons given in paragraph 7 of his letter.
4. Clearly the differing opinions of Messrs Griffiths and Gardiner will need to be resolved although it is common ground that you could not safely exempt Laker under the existing Regulation 32 as was done with BA.
5
We have meanwhile received Hong Kong telegram No 1498 of
13 November giving Mr Jeaffreson's views on possible changes in the ATLA rules. He strongly advises that this course should be used for Laker rather than an exemption. As he points out that the whole process of rule-changing could be tied up by the Spring of 1981, this looks reasonable.
6
You will also wish to be aware of the view of Mr Roberts of DOT on this. Mr Roberts is at present in Hong Kong and feels that allowing a fourth airline to fly to Hong Kong could adversely affect our air services relations in the region Hong Kong telegram No Allot 39. We do not know how Mr Nott will view Laker's case in the light of Mr Roberts' latest views,
13 November 1980
cc
R D Clift
Hong Kong and General Department
Mr Burton MAED
Mr Gardiner Legal Advisers
CONFIDENTIAL