TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 35

2 -

(i)

As a result of:

The definition last referred to,

(ii)

The nature of the General Objectives set

(iii)

out in Section 3 in relation to the

performance by the Authority of its functions,

The detailed provisions of the Guidance

contained in Part II of Cmnd. 6400 presented

to Parliament in February 1976 and still

current,

CAP will be severely prejudiced in its application,

made as it is in competition with two British airlines

which it will be the duty of the Authority to favour

when hearing the applications, unless for the purpose

of such hearings the Authority is released from the

constraints of the Guidance and Objectives.

4.

By a telex dated 10th July 1979 (a copy of

which is before us) Government mooted to the Commonwealth

and Foreign Office the suggestion that this legislative

prejudice might be overcome by the Secretary of State

giving appropriate directions to the Authority pursuant

to his powers conferred by s.4(3) of the Act, whereby

"The Secretary of State may, after consultation with the

Authority, give to the Authority directions to do a

particular thing which it has power to do, or refrain

from doing a particular thing if the Secretary of State

considers it appropriate to give such directions ...

(b) in connection with any matter appearing to the

Secretary of State to affect the relations of the

United Kingdom with a country or territory outside the