XN000022-1980-03-27 — Page 3

THURSDAY, MARCH 27, 1980

BRITISH CIVIL AVIATION AUTHORITY'S DECISION ON HK-LONDON ROUTE NOT FAIR ******

THE SENIOR UNOFFICIAL LEGISLATIVE COUNCILLOR, THE HON OSWALD CHEUNG, TODAY HIT OUT AT THE DECISION OF THE BRITISH CIVIL AVIATION AUTHORITY FOR NOT GRANTING LANDING RIGHTS ON THE HONG KONG-LONDON AIR ROUTE TO CATHAY PACIFIC.

SPEAKING IN THE LEGISLATIVE COUNCIL, HE SAID ONE RATHER SUSPECTS THE DECISION WAS POLITICAL.

+OUR WHOLLY DEPENDENT STATUS FAILED TO PROTECT US IN THE EEC TEXTILE NEGOTIATIONS- HERE IT WILL WORK TO OUR POSITIVE DISADVANTAGE, UNLESS THE MINISTER RECTIFIES THE ERRORS. IT IS WITHIN HIS POWER.+

MR CHEUNG POINTED OUT THAT THE BUDGET PROVIDED $549 MILLION THIS YEAR FOR DOUBLE TRACKING AND ELECTRIFICATION OF THE KOWLOON CANTON RAILWAY. THE WHOLE PROJECT WILL COST $2 BILLION, OF WHICH A VERY LARGE PART WILL BE SPENT IN THE UNITED KINGDOM WITH WHOM HONG KONG HAS PLACED THE ORDER OF THE ROLLING STOCK.

THE ROLLING STOCK FOR THE MTR WAS ALSO SUPPLIED BY THE UK.

HE NOTED THAT HONG KONG COULD HAVE PLACED THE ORDERS ELSEWHERE BUT DID NOT DO SO BECAUSE WE BELIEVED IN FOSTERING RECIPROCITY IN TRADE BETWEEN THE UK AND HONG KONG+.

+ IT HAS COME THEREFORE AS A SURPRISE TO ME THAT IN THE MATTER OF GRANTING LANDING RIGHTS ON THE HONG KONG-LONDON AIR ROUTE THE CIVIL AVIATION AUTHORITY IN LONDON SHOULD HAVE FORGOTTEN ABOUT RECIPROCITY RECIPROCITY BOTH AS REGARDS TWO-WAY TRADE, AND RECIPROCITY IN THE SPECIFIC MATTER OF LANDING RIGHTS, HE SAID.

+BRITISH AIRWAYS HELD THE MONOPOLY FOR 30 YEARS. INSTEAD OF RECIPROCATING BY GRANTING A LICENCE TO CATHAY PACIFIC, EITHER WITH THE ADDITION OF BRITISH CALEDONIAN OR TO ITS EXCLUSION, THEY HAVE ADDED A SECOND BRITISH CARRIER TO THE ROUTE.

+THE REASONS GIVEN BY THE CIVIL AVIATION AUTHORITY DO NOT BEAR EXAMINATION FOR ONE MINUTE,

+WE WOULD NOT BE BETTER SERVED BY AN AIRLINE THAT PROPOSES TO USE THE SMALLER DC-10 RATHER THAN THE BOEING 747.

THE CAA HAS COMPLETELY IGNORED THE PATTERN OF TRAFFIC, WITH PEAKS ON BOTH SIDES OF THE WEEK-END AND DIPS IN MID-WEEK, HE ADDED.

MR CHEUNG SAID AS CATHAY WAS ENCOURAGED TO BUY UK EQUIPMENT, THEY HAVE SPECIFIED THAT THE IR 747S SHOULD BE POWERED BY ROLLS ROYCE ENGINES.

+1 AM INFORMED THEY HAVE INVESTED 70 MILLION POUND STERLING IN ROLLS ROYCE ENGINES TO THAT END, AND PLAN TO INVEST 10 MILLION POUND STERLING A YEAR ON OTHER UK ÉQUIPMENT. THIS WAS IN FURTHERANCE OF RECIPROCITY, HE SAID.

/+THE DECISION