TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 62

CONFIDENTIAL

DSR 11C

Incidentally Cmnd 4899 was superseded by Cmnd 6400 and

thus is no longer valid.

4. We acknowledge that the definition of British

airlines in Section 3(1) of the 1971 Act favours

UK based airlines and not Hong Kong based airlines.

However you have drawn attention to the bracketed

words in Section 3(1)(a) and the CAA has a duty

to take into account those words as much as the rest

of Section 3(1)(a). Indeed this matter will no

doubt be argued at the hearing.

over.

5. The Secretary of State's decision that the

hearing should take its normal course does not pre-

clude him from giving a direction once it is

This would then be given in the light of the

evidence which will be submitted to

to the CAA. After

the CAA's decision has been announced any party,

including CPA if relevant, is of course free to

appeal to the Secretary of State.

Whether or not

an appeal had been lodged, it would be possible

for the Hong Kong Government to put its case to the

British Government, if the decision was contrary

to Hong Kong's interest. It would also be open

to the Secretary of State to consult the Hong Kong

Government in considering any appeal. Such

consultations could contribute to a variation of the

CAA's decision by the issue of a Direction.

6.

We do not consider it appropriate to adopt

you suggestion of a Hearing in Hong Kong by an

argumented ATLA, followed by a Direction to

CAA to issue a licence to the airlines selected

(your option (). The CAA has statutory procedures

CONFIDENTIAL

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