TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 40

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any application did succeed it could only be that of BCAL. This method of dealing with the applications would be regarded as unfair and prejudicial and would undoubtedly arouse considerable concern and resentment at all levels in Hong Kong. There is also a risk that the CAA and the Air Transport Licensing Authority ("ATLA") in Hong Kong might reach conflicting decisions; for example the CAA might grant no second licence or possibly grant one to BCAL, and ATLA might grant one to CPA. On the facts there is, therefore, ample

material for the Secretary of State to conclude that

the - manner in which the applications are determined

and the outcome of those applications are matters which

appear to him to affect the relations of the U.K. with

a country or territory outside the U.K.

15.

In spite of what we say above, we can see

practical and legal difficulties about the directions

SO

far proposed.

16.

They are, in short, directives that:

(a) CPA should be treated for the purposes

of the application as a British airline.

(b) CPA should be given a licence.

(c) The applications should be heard first by ATLA in Hong Kong (its membership being supplemented for the purpose with members of

the CAA) and that the CAA should then follow

the decision of ATLA.

(d) The CAA should disregard the Guidance.