TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 24

68BE 18-77

CONFIDENTIAL

HKK

Reference..

184/5

RECEIVED 'N RAGSTRY RO. 51

18 SEP 1979

JEST JEKOER INOCK

ROCISTY

orion Taken

(

Miss A E Stoddarė (Maritime, Aviation & Environ

Environment G 66/1)

AIR SERVICES ON THE LONDON-HONG KONG ROUTE

1.

}

Thank you for your Minute of 14 September covering your draft Note for Mr Murray, on London-Hong Kong Air Services.

2. I suggest it would be helpful if in the second paragraph you could explain why the DOT were unable to accept Hong Kong's suggestion that the CAA and the ATLA should hold their Hearings jointly: without some such explanation, it looks distinctly odd that two bodies should be independently going through the proceedure of examining identical EVIDENCE for the same purpose. but with the risk of them coming to conflicting conclusions.

3. I suggest it would also be helpful if the Note tried to be more precise about the various ways in which the Hearings could end up. If both CAA and ATLA reach an identical conclusion, there is likely to be no problem, even if the verdict is in favour of one of the British based airlines: although there would certainly be some resentment in Hong Kong it would be difficult for them to protest very convincingly if their own ATLA had endorsed the décision.

4. The most likely conflict would be for ATLA to come down in favour of CPA and for CAA to decide in favour of one of the British airlines. It would be academic to consider whether in such circumstances the Governor had the power to override the ATLA decision, since it would be quite impractical for him to do so.

The question in such a case would be whether the Secretary of State for Trade could be prevailed upon to reverse the CAA decision as you know, we in the KHGD would argue that he should (particularly if the NC showed that CAA had reached their decision only because of the pro- British bias in their terms of reference).

5. In the unlikely case of ATLA deciding in favour of a British airline and CAA in favour of CPA, I would expect no difficulty in finding a way to bringing ATLA into line, whatever the legal position over appeals.

6. If there were a conflict which could not be resolved by persuading one or other party to change its' decision, I assume that the UTDoe would be that none of the three would DUP. flying the route. This would undoubtedly cause resentment in Hong Kong, though it might not greatly worry CPA who have doubts about the economic viability of the route at the moment, and are mainly concerned to keep any othercairline off the route. The CONTINUA TON of the British Airways monopoly for the time being would not greatly concern them.

17 September 1979

WE Quantrill

爨

Hong Kong and General Department K 247 233 4381

cc Mr R K Gardiner (Legal Advisers W 44/3)