TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 52

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CONFIDENTIAL

CONFIDENTIAL

FM FCO 211600Z AUG 79

TO PRIORITY GOVERNOR HONG KONG

TELEGRAM NUMBER 672 OF 21 AUGUST.

K184/5.

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YOUR TELS NOS 959 AND 1186: AIR SERVICES ON THE LONDON--HONG KONG

ROUTE.

1. WE UNDERSTAND YOUR MISGIVINGS ABOUT THE POSITION OF CPA IN RELATION TO THE STATATORY DUTIES LAID ON THE CAA IN CONSIDERING. APPLICATIONS FOR AIR TRANSPORT LICENCES. WE HAD ALREADY CONSIDERED SOME OF THE POINTS WHICH YOU RADE IN YOUR FIRST TELEGRAM UNDER REFERENCE. WE HAVE NOW LOOKED AT THESE AGAIN AND HAVE ALSO CONSIDERED YOUR OTHER POINTS. WE CONCLUDE THAT THE DECISIONS ALREADY TAKEN MUST STAND, 30 THAT THE APPLICATIONS TO THE CAA MADE BY CPA AND THE OTHER AIRLINES ARE ALLOWED TO TAKE THEIR NORMAL COURSE. THIS NEED NOT PREJUDICE CPA'S POSITION AT THE END OF THE DAY,

2. WE CONSIDERED EARLIER WHETHER IT WOULD DE PROPER FOR THE SECRETARY OF STATE FOR TRADE TO ISSUE A DIRECTION TO THE CAA THAT FOR THE PURPOSES OF THEIR HEARING THEY SHOULD REGARD CPA AS BEING ON AN EQUAL FOOTING WITH THE UK APPLICANTS (OPTION A IN PARAGRAPH 4 OF YOUR FIRST TELEGRAM UNDER REFERENCE). MV NOTT DID NOT THINK IT RIQUE TO DO SO, HIS MAIN REASONS WERE POLICY ONES IN THAT HE DID NOT WISH THROUGH A DIRECTION, TO REVERSE A PROVISION STATED CLEARLY IN AN ACT OF PARLIAMENT: BUT HE WAS ALSO ADVISED THAT THERE

KERE DOUBTS WHETHER SUCH A DIRECTION WOULD BE INTRA VIRES. HE ALSO

DID MOT THINK THAT IT WOULD BE PROPER TO GIVE A DIRECTION TO THE

CAA TC 13GUE A LICENCE TO AN AIRLINE WHOSE PRINCIPAL PLACE OF BUSINESS WAS NOT IN THE UK WITHOUT A HEARING HAVING TAKCH PLACE (YOUR OPTION D).

2. YOUR OPTION B IS PUT FORWARD WITH OPTION A, TUT DOES NOT RECESSARILY FALL WITH IT. HOWEVER, ALTHOUGH THE LAKER DUCISION RELATED ONLY TO THE FACTS OF THE LAKER CASE IT IS CLEAR FROM THE DECISION OF THE COURT OF APPEAL THAT THE QUIDANCE CANNOT HAVE THE GAME SPFECT AS A DIRECTION AND THAT THE CAA HAS DISCRETION IN THE WAY IT APPLIES THE POLICY AND HAS INDEED SHOWN THIS IN OTHER CASES.

CONFIDENTIAL

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