TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 17

Mr Murray

CONFIDENTIAL

HKK 184/5

li

RECEIVED IN REGISTRY NO.

INDEX

2 OCT 1979

OFFICER

"A

REGISTRY

Action Take

A

B

C

CPA AND THE LONDON/HONG KONG ROUTE

You asked about the constitutional position if the Civil

Aviation Authority and the Hong Kong Air Transport Licensing

Authority reached different decisions on the applications for

additional services on the London-Hong Kong route. I attach

a Background Note prepared in consultation with HK&GD and Legal

Advisers.

2.

On the question of the bias in the 1971 Civil Aviation

Act which Mr Swire has raised again with the Secretary of State

for Trade (your minute of 13 September) we now have a copy of a

draft reply prepared in the Department of Trade. However, the

draft is still on its way up the DOT and I understand that the

final version is likely to be much more cautious and may admit

no more than that various amendments to the Act are under consi-

deration. What this means in practice is that the DOT have

included our proposal for an amendment to remove the bias against

CPA in a round up of the proposals for amendment of Section 3 of

the Act, most of which are otherwise intended to take account

of changes in the status of British Airways. They have divided

views on what to do about it and there would certainly be oppo-

sition to any postponement of the hearings in the meantime.

CONFIDENTIAL

/While