Α
1107
Mr Donald
184
416
fa.
20%..
Swt. Youde
CONFIDENTIAL HKK 18416
LONDON/HONG KONG AIR SERVICES
ROZENVED IN REGISTRY NO.
13 NOV 1980
DESK OFFICER INDEX
PA
4/10/11
REGISTRY Action Taken.
AW 13/11
1. We now have the decision of the Hong Kong Air Traffic Licensing Authorities (ATLA) on this route (Hong Kong telegram number 1470).
2.
The decision does not allow Laker Airways to fly to Hong Kong. However, there is provision for a review of this decision if circum- stances change. The ATLA have also given Cathay Pacific and British Caledonian the right to have a daily service on the route, in line with the Civil Aviation Authority's decision.
3. I understand from Mr Ford that the Hong Kong Government will take the line that they had supported the Laker application and regretted the decision, although they would point to the independence of the ATLA.
4. The ATLA has taken its decision on air service grounds alone. There is no statutory right of appeal against the ATLA's decision, but the Governor is seeking advice from Hong Kong as to whether the right to petition the Governor, which is available to anyone in Hong Kong, could be used in this case.
111
5. Mr Nott will not be pleased by this decision. He told a visiting delegation from the Hong Kong General Chamber of Commerce last week that, if Laker's application was turned down, they should bear in mind the consequences for the Multi-Fibre Arrangement (MFA) which expires at the end of the year.
6. We shall keep a careful watch on this; the next step is the Governor's meeting with Mr Nott on 11 October when this matter will certainly come up. I understand that the Governor will take the line that the economic arguments against the Laker case were very strong, given that none of the other three competitors are making money. He may also underline the limitations on ATLA's consideration of non-economic factors and mention that the Hong Kong Government is considering with the DOT possible changes in the ATLA rules which could alter the position.
7 November 1980
cc:
PS/Mr Blaker
Sir E Youde
Mr Burton, MAED
ain
R D Clift
Hong Kong and General Department
Isuppor
we must wait for the
meeting between für M. Madehose and Mr. Nott.
Mr McCrory, News Dept. (The latter wie be furious!) Antwall
Mr Fitzherbert,
CONFIDENTIAL
Eling Actancy
10711