TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 57

CONFIDENTIAL

5

One alternative way of proceeding would be to amend the

definition of "British airline", at least to the extent of

allowing dependent territory airlines to be treated on an

equal footing in respect of routes to and from their territory.

This is a point we

a point we are taking up

are taking up separately with the DOT as they

are proposing to amend the Act in any case to remove the

the distinction

between private and publicly-owned airlines. It is not yet clear

whether, even if such an amendment can be put forward, it would

be made at a time and in a form which would be helpful in the

present case. In any event it seems preferable on tactical

grounds not to link our proposals for a change in the Act to any

one particular application.

6. If we accept that the hearing is likely to go ahead under the

existing legislation without intervention by the Secretary of

State for Trade the question is what assurances if any we can

ask for from the DCT about the procedures after the CAA decision

is announced. There are appeal procedures (which are almost

certain to be invoked by one party or another) and the ultimate

decision then lies with the Secretary of State for Trade.

While the DOT are willing to point out to Hong Kong that it will

be open to their Secretary of State to vary the CAA decision,

whether on appeal or by a direction, as the CAA procedures are

quasi judicial they would strongly resist any suggestion that the

verdict should in effect be decided before the evidence has been

heard. We cannot in my view quarrel with this; nor does it close

It is quite possible that CPA will be granted a

Licence in any case. If they are not, an appeal is possible and it

will be open to our Ministers at that stage to draw attention to

any implications for our relations with Hong Kong including the

any options.

CONFIDENTIAL

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