TNAG-0871-FCO40-1081-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 20

DF Murray Esq, CMG

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11 December 1979

In our

The HK Government, through the Attorney General, has intervened in the CAA proceeding and already has filed an extensive "preliminary" submission. B.CAL learned a little over a week ago that the HK Government might well persist in its original view and urge CAA to repudiate the ATLA decision and to license Cathay as the sole additional carrier on the route. view, such a position would not only be rather outrageous, but it would be quite unlawful and indeed unconstitutional. Such a manifest disrespect for duly constituted authority by those in power and the ensuing public controversy could only undermine public confidence in the existing form of colonial government in Hong Kong.

We wired the Attorney General just over a week ago and asked that he take no action before CAA which would be inconsistent with or would under- mine or derogate from the effectiveness of the ATLA decision. A copy of that wire is attached, and we refer you to its contents for a fuller statement of our position.

We yesterday received a telex response from Mr Griffiths which evaded the points raised by our message and stated only that the HK Government would "act as it considers to be in the best interests of Hong Kong generally".

Unless B.CAL receives an undertaking from the Attorney General prior to the convocation of the CAA hearing on Thursday, I will air this dispute at some length in my opening statement for B.CAL that morning. The telex exchange will be made public and the position of the HK Government will be subjected to our most vigorous challenge.

We think it is indefensible that the Attorney General and his colleagues in the Executive should seek to arrogate to themselves power which is reposed by law in others and to challenge and undermine a co-ordinate and, for purposes here pertinent, a superior organ of government. Can one imagine the hue and cry if the UK Attorney General deigned to appear in Hong Kong or elsewhere to argue that a relevant licensing decision by CAA be effectively repudiated?

This controversy raises matters far more important than who wins an air transport license we have little doubt that CAA will confirm ATLA's action in granting B.CAL authority to fly London-Hong Kong. But the unprincipled attitude of the HK Executive that the law and principles of constitutional government be damned cannot be tolerated. In a real sense the integrity and indeed the future viability of colonial government is at stake. We ask that FCO act promptly to bring its wayward brethren back into line. Mr Griffiths plans to attend the CAA sessions so there should be no difficulty in reaching him.

Yours sincerely,

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L N Bebchick

Joint Company Secretary