TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 12

34

[JE]

HOFC 028/08

PP F C O

RR HONGAID

GR 935

Sa 67

HRK 184/5

INDE

Wo

CONFIDENTIAL

•

TY NO.

- 9 OCT 1979.

FM HONG KONG 8889952 OCT 79

TO PRIORITY FOREIGN AND

9.10.

REGISTRY iNction Tuxen.

14

MISS BROWN Hell MAED -Add llud GD

Legal Aduizer

Sa

ADVANCE COPE

See (55)

to theheren

1.

The legal opinion is at folio 42-9

had not previously

seen this (but can easily under- stand why to Williamson thought it was the same andere discussed earlie- the covering lette as the one certainly does not lead one to suspect. It to be an

important paper). COMMONWEALTH OFFICE 2new the most important point

effective

TELNO.1388 OF 8 OCTOBER,

is the magestion that BA have an INFO HONG KONG GOVERNMENT OFFICE LONDON. need to track down the references to veto on any new service - we shall

1.

confirm this.

W. Quartill YOUR TELNO.672 AIR SERVICES ON THE LONDON-HONG KONG ROUTE. 80

THE POSITION OUTLINED IN OUR TELNO.959 AND THE DECISIONS

COMMUNICATED IN YOUR TELNO.672 BOTH PRE-DATED RECEIPT BY US

OF A LEGAL OPINION FROM A SPECIALIST Q.C A COPY OF WHICH WE

HAVE SINCE PROVIDED TO D.0.T AND YOURSELVES. ASSUMING HIS. ADVICE TO BE CORRECT (AND WE BELIEEVE IT IS), IT REVEALS A MORE EXTENSIVE AND WIDESPREAD LEGISLATIVE PREJUDICE THAN HAD PREVIOUSLY BEEN THOUGHT TO BE THE CASE. IT SEEMS THAT THE PREJUDICE EXTENDS BEYOND CPA AND EMBRACES ALSO LAKER AND POSSIBLY BCAL, AND MOREOVER THAT A STRONG POSSIBILITY EXISTS THAT NO APPLICANT AT ALL CAN SUCCEED BEFORE CAA. IT OCCURS TO US THAT POSSIBLY THE FULL IMPORT OF SUCH A LEGAL OPINION WAS NOT BEFORE THE SECRETARY OF STATE FOR TRADE AND HIS ADVISERS BEFORE HE REACHED

HIS DECISION.

2. IN SUMMARY, THE POSITION SEEMS TO BE AS FOLLOWS:-

(A)

ATLA ARE BOUND BY STATUTORY REGULATIONS MADE UNDER THE U.K) AIR NAVIGATION ACT 1936. THESE PROVIDE THAT THE OVERRIDING OBJECT IS TO ENSURE THE MOST EFFECTIVE SERVICE TO THE PUBLIC WHILE AVOIDING UNECONOMICAL OVERLAPPING''. HENCE ALL THE APPLICANTS HAVE AN EQUAL CHANCE BEFORE ATLA AND THAT BEST ABLE TO

SERVE THE PUBLIC NEED WILL SUCCEED, THERE IS NO PROVISION FOR THE HONG KONG GOVERNMENT TO GIVE A DIRECTION TO ATLLA: