S]

Bases

998

999

pint contre. Specifically, does this mean hat the warheads are physically under ritish control; and, more generally, oes it mean that in the final analysis would be possible for the British jovernment to take a unilateral decision

use them?

Lord STRATHCONA and MOUNT OYAL: My Lords, as far as the last art of that question is concerned there no question of the British being in a osition to take a unilateral decision to re the weapons, if that is what I under- ood my noble friend to ask me. This 'rangement has obtained ever since 1952, the time of the Government under Ir. Attlee; and the arrangement has not en altered although the weapons them- lves have been altered. The actual ing of the missiles could not take place ithout the necessary political authority der the same arrangement as has ɔtained ever since 1952. As I have said fore, the question of the use of these ises is a matter of joint decision between e United States and the United Kingdom

thorities.

HONG KONG-LONDON AIR SERVICES

22 p.m.

Lord TREFGARNE: My Lords, with ur Lordships' permission, I will repeat Statement being made by my right nourable friend Mr. Nott on Hong Kong London air services. The Statement is follows:

"With permission, Mr Speaker, in view of the widespread interest in the matter, I would like to make an oral statement about the decision I have aken concerning air services between London and Hong Kong.

"Last year three airlines, British Caledonian, Laker and Cathay Pacific, 1 Hong Kong based airline, applied o the Hong Kong Air Transport Licensing Authority and the Civil Aviation Authority for licences operate on the London-Hong Kong oute in addition to British Airways. At present British Airways provide the nly direct service, although there are f course already a large number of

to

Hong Kong-London

[ 17 JUNE services between Hong Kong and other European cities.

'Both authorities heard evidence separately on these applications. In December the Hong Kong Authority licensed British Caledonian and Cathay Pacific, but restricted their frequency of service to four and three flights a week respectively. In March this year, the Civil Aviation Authority announced its decision to license only British Caledonian.

"The two applicants who were un- successful before the Civil Aviation Authority submitted appeals to me under the provisions of Regulation 16 of the Civil Aviation Authority Regulations 1972. I also received a number of representations, including one from the Government of Hong Kong, that, under the powers conferred on me by Sec- tion 4(3) of the Civil Aviation Act 1971, I should direct the authority to license Cathay Pacific in the interests of the United Kingdom's relations with Hong Kong.

"I have given this matter the most careful consideration, in particular against the criteria set out in Section 3 of the Act, and I found myself, in dis- agreement with the Civil Aviation Authority in a number of ways: in particular I was convinced by Sir Freddie Laker's contention that there is a large untapped market for this route if fares are pitched at the right level.

"In his evidence he described this market as consisting of the forgotten men and women at the bottom end of the market-who might wish to fly if they could afford to do so. I find myself in agreement with this dynamic approach to civil aviation and in my view it should be acknowledged.

"I also felt that the authority had placed too much emphasis on the economics of the proposed additional services in the short term, and too little on the benefits to the development of the United Kingdom civil aviation industry generally of choice of service and competition on a route such as this in particular competition with other non-British airlines.

1980 ]

Air Services

10

airline passengers that they be offer a wider choice of service than exists present, that it would be unreasonab to expect British airlines, within t meaning of Section 3(1) of the Act, be granted exclusive rights when Cath Pacific are based in Hong Kon command much local loyalty, and expect to draw traffic from their netwo of regional services.

"I concluded therefore that substantial new traffic likely to generated over a period by a wid variety of services would offer a reaso able prospect that four operators cou over a period, achieve an econom return on this route.

"I have accordingly upheld the Ci Aviation Authority's decision to licer British Caledonian but in addition ha directed it to reverse its decisions on t other two applications and issue licen in the same terms to Cathay Pacific a Laker, but without prejudice to former's existing rights between Ho Kong and Bahrain. The authority a the other parties to the appeals are bei informed of my decision.today.

'As I have reached this decision the normal appeal criteria, I do r intend to issue a political direction un Section 4-and I have informed t Hong Kong Government according

I believe that my decision will welcomed by airline passengers genera and in Hong Kong where freedom compete is one of the cornerstones which the economic success of Ho Kong has been built. I hope therefo that the Government of Hong Ko will lend support to the applicatio which Laker may now wish to renew the Hong Kong Air Transport Licensi Authority and to any applications wh British Caledonian and Cathay Paci may wish to make to increase t frequency of their services, should th believe it is in their interests to do so My Lords, that concludes the Stateme

Lord BESWICK: My Lords, I am sɩ the House is grateful to the noble Lord repeating this Statement, on what is rea a controversial decision. May I ask h whether I am not right in saying that qu recently and emphatically Her Majest "I felt that it was in the interests of present Government have emphasis

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