XN000022-1980-06-18 — Page 14

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of my audience this evening. And as is usual and entirely proper, much of the

advice of each party to the case was devoted to explaining why I should on

no account follow the advice given to me by the others. So after considerable

thought - and I did indeed devote many hours to pondering the issues I took

the decision I announced earlier today. I upheld the decision of the Civil

Aviation Authority to license British Caledonian, and I directed the authority

to grant in addition licenses to Cathay Pacific and to Leker.

The view has for some time been widely held that it would be in

Ꮀ

the interests of travellers between London and Hong Kong to have a wider choice

of service then exists at present. In Hong Kong it was argued strongly that

both on grounds of equity and of the loyalty which Cathay command locally

there should be a competing airline based in Hong Kong. I then had to decide

whether I should allow all four airlines British Airways, BCAL, Cathay and

Laker to compete together on the route or whether I should exclude one or

even two of them, and on what grounds.

-

"In passing I should say that I am also responsible for competition

policy in the United Kingdon.

"In taking the decision my philosophical starting point was a strong

belief in the virtues of competition, in the interests of consumers and

producers alike. This belief was an essential part of the platform on which

by party was elected to government just over a year ago: it is also

fundamental to the philosophy and indeed to the commercial success of Hong

Kong.

/"I Sp