TNAG-0514-FCO40-579-Purchase-of-wide-bodied-aircraft-by-Cathy-Pacific-Airlines-1974 — Page 78

CONFIDENTIAL

(16) Some information was given on other factors in CPA's choice of the DC10.

(a) The DC10's passenger/cargo mix was better adapted to CPA's needs.

(b) The Engineering Director was very strongly against the TriStar

because its engineering systems were more complicated. Nine major airlines flying through Hong Kong use DC10's and Engineering expertise is therefore readily available for this plane.

(c)

The Operations Director on the other hand preferred the TriStar because the pilots in turn prefer its landing system.

(17) In a phrase, Mr Swire summed up the CPA view by saying that if the DC10 had Rolls Royce engines, or if Douglas made the Tristar, then CPA would have been delighted to buy either. Had Lockheed got financial "muscle" the CPA deicision would have been much more open.

Announcement of Decision

(18) The meeting ended with a discussion about the difficulties that would arise if CPA were to announce a decision adverse to TriStar on February 28, the date of the British General Election. This timing could have unfortunate political consequences and the DTI very much wish to protect their Ministers from such a situation. The Swire's representatives were asked if they could find some way in which CPA could delay their announcement for say a week after the Election. The incoming Minister should be able to put his mind to the problem within say seven days, but he could not be expected to consider such an important matter in a shorter time. Mr Swire said he would put the problem to CPA, but the Hong Kong Press were being very inquisitive.

DTI

CA2/1A

February 1974

Distribution

Air Division, Mr Warrington

CA2, Mr Rogers

CA2/1 Mr Knighton

CA2/1A Mr Stephenson

CRE2/3 Miss Welch

BCARFE, Hong Kong

British Trade Commission, Hong Kong

FCO IST

FCO M & T

I

Governor, Hong Kong

3

CONFIDENTIAL