TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 112

LAKER APPLICATIONS.

CONFIDENTAL

THE COMPANY HAS PROBABLY LODGED BY NOW WITH

HE CAA ITS OWN APPLICATION FOR THE ROUTE HONG KONG - LONDON

(GATWICK) VIA BAHRAIN/DUBAI. WE CONFIRM TOO THAT CPA HAS FILED

H HONG KONG LONDON ROUTE APPLICATION IN HONG KONG UNDER THE 1949

REGULATIONS. ATLA MUST OBVIOUSLY WITHOUT UNDUE DELAY DEAL WITH

THAT APPLICATION. FOR VARIOUS REASONS THE APPLICATION HAS NOT YET

BEEN PROCESSED AND IS NOT PUBLICLY KNOWN.

11. THE MOST LOGICAL AND LEGALLY SIMPLEST SOLUTION WOULD APPEAR TO

US TO BE TO FOLLOW OPTION (C), NAMELY TO CONDUCT A JOINT HEARING BY AN AUGMENTED ATLA IN HONG KONG, FOLLOWED BY A DIRECTION BY THE

SECRETARY OF STATE TO THE CAA TO LICENSE WHOMEVER THE AUGMENTED

ATLA GRANTS THE ROUTE. IF THIS IS NOT ACCEPTABLE, THEN A DIRECTION

BY THE SECRETARY OF STATE SO THAT CPA IS NOT PREJUDICED AND APPEARS

ON EQUAL TERMS WITH THE OTHER APPLICANTS IS IN OUR VIEW ESSENTIAL.

12. TO SUMMARISE, FROM OUR POINT OF VIEW IT IS NOT AN OVERSTATEMENT TO SAY THAT THERE WILL BE A MOST UNFAVOURABLE REACTION IN HONG KONG SHOULD CPA BE DENIED THE RIGHT, AT THE VERY LEAST, TO COMPETE ON EQUAL TERMS WITH OTHER DRITISH AIRLINES FOR

THE GRANT OF AN AIR TRANSPORT LICENCE. SIMILARLY, WE BELIEVE

THERE WILL BE PUBLIC OUTCRY BOTH IN THE UK AND HONG KONG IF

FOLLOWING FULL HEARINGS BEFORE BOTH CAA AND ATLA NO WORKABLE AND

ACCEPTABLE CONCLUSION IS REACHED, AND NO SECOND CARRIER IS ABLE

TO COMMENCE SERVICE. WE ACCORDINGLY URGE THAT THE DIFFICULTIES

SHOULD BE MET BY WAY OF AN APPROPRIATE DIRECTION BY THE SECRETARY

OF STATE.

SEE M.l.F.T.

MACLEHOSE

FILES

MAED

HRGD

ECON D

MR BUTNER

MISS BROWN MR THOMAS

COPIES

то

HONG KONG BOUT OFFICE LONDON

COPIES SENT

CAD/DOT

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CONFIDENTAL