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SUBJECT: LONDON/HONG KONG AIR SERVICES NICK 184/6

RALLIVED IN REJSTRY RO. 51

1. Mr March told me yesterday that when the Hong Kong General Chamber of Commerce delegation met Mr Nott on 3 November he mentioned the HK ATLA hearing on Sir Freddie Laker's application for a licence to fly to Hong Kong. I understand the ATLA decision be made public on 7 November.

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2. Mr Nott said that Hong Kong should bear in mind the consequences for the MFA negotiations of the ATLA's refusing Sir Freddie's application. The delegation were rather worried about this and asked that the FCO and the Hong Kong Government office be told what Mr Nott had said. Mr Ford has told the Governor about this.

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3. Mr Hobbs of DOT was present when Mr March spoke to me. surprised that Mr Nott had said this because DOT thought it would help HMG if Sir Freddie's application was turned down. HMG could say that Hong Kong did not really believe in a free market and should not expect HMG to do so in respect of multi-fibres.

5 November 1980

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P J Williamson

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Mr Monic

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