TNAG-0864-FCO40-1074-Involvement-of-Hong-Kong-in-air-services-agreements-1980 — Page 71

191

GR 320

NFIDENTIAL

CONFIDENTIAL

FCO 20190OZ JUN 79

TO PRIORITY HONG KONG (GOVERNOR AND BCARFE);

TELEGRAM NUMBER 423 OF 20 JUNE

JEAFFERSON'S LETTER OF 23 MARCH TO MCLAREN

AIR SERVICES ON THE LONDON/HONG KONG ROUTE

HkK 184/1

HAND

No

2 5 JUN1979

PA

1825.6

38

*^.51

1. TWO UK AIRLINES, BRITISH CALEDONIAN AND LAKER HAVE NOW PUT IN

APPLICATIONS TO THE CIVIL AVIATION AUTHORITY TO OPERATE SCHEDULED

SERVICES ON THE LONDON-HONG KONG ROUTE, WE HAVE ALL ALONG REASLISED

THAT THE RECEIPT OF ANY SUCH APPLICATIONS WOULD CALL INTO QUEST-

ION THE PROPRIETY OF UK GOVERNMENT INVOLVEMENT IN A CONTINUING

STUDY, THE PURPOSE OF WHICH COULD BE SEEN AS CONFLICTING WITH THE OBLIGATIONS IMPOSED UPON THE CAA IN RELATION TO THE LICENCE APPLI-

CATIONS UNDER THE 1971 CIVIL AVIATION ACT AND ON THE DEPARTMENT

AS THE APPELLATE BODY FROM THE AUTHORITY'S DECISIONS.

2. THE SECRETARY OF STATE FOR TRADE, WHO IS THE RESPONSIBLE UK GOVERNMENT MINISTER UNDER THE ACT, HAS, AFTER CAREFULLY WEIGHING ALL THE PROS AND CONS, DECIDED THAT HE IS NOT (REPEAT NOT) TREPARED TO DIRECT THE CIVIL AVIATION AUTHORITY NOT (REPEAT NOT) TO PROCEED

WITH THE DUE PROCESSES CONSEQUENT UPON THE RECEIPT OF LICENCE

APPLICATIONS AND THEREFORE ANY FURTHER UK GOVERNMENT INVOLVEMENT

IN THE JOINT STUDY WILL HAVE FORTHWITH TO CEASE. THE DEPARTMENT OF

TRADE WILL BE WRITING TO YOU VERY SHORTLY EXPLAINING FULLY HOW HONL

KONG INTERESTS MAY BE SAFEGUARDED IN THE DUE PROCESSES WHICH MUST

NOW FOLLOW.

3. WE DO NOT THINK THE WORK WHICH HAS BEEN DONE BOTH IN THE UK AND

IN HONG KONG AND JOINTLY ON THE STUDY SO FAR WILL HAVE BEEN WASTED,

MUCH OF IT WILL BE USEFUL IN PREPARING YOUROWN EVIDENCE, SHOULD YOU CHOOSE TO GIVE IT, BEFORE THE CAA HEARING, AND IN PRESENTING YOU CASE TO THE SECRETARY OF STATE FOR TRADE ON APPEAL, SHOULD THIS ARISE. THERE ARE A NUMBER OF LIMITATIONS (EG ON THE DISCLOSURE OF

THE CONTENTS OF CMU'S) BUT THESE WILL BE COVERED IN THE LETTER

REFERRED TO IN PARA 2 ABOVE.

CARRINGTON

FILES

MAED

HKIGD

COPIES PASSED CAD/DOT]

CONFIDENTIAL