TNAG-0871-FCO40-1081-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 61

CONFIDENTIAL

2. ON THE QUESTION OF VIRES, WE ARE ADVISED THAT THERE IS SUBSTANTIAL DOUBT WHETHER A DIRECTION TO THE CAA TO TREAT CPA ON

ALL FOURS WITH BRITISH AIRLINES WOULD BE INTRA VIRES. WE ACKNOWLEDGE THAT THE CONTRARY IS ARGUABLE. MR NOTT, HOWEVER, TOOK HIS DECISION NOT TO ISSUE SUCH A DIRECTION MAINLY ON POLICY GROUNDS (PARA 2 OF OUR TELNO 672). THESE GROUNDS ARE STILL VALID AND

WE ARE NOT PURSUADED THAT THERE IS A CASE FOR ASKING HIM TO RECONSIDER HIS EARLIER DECISION.

3. WE AGREE THAT MR NOTT IS LIKELY TO BECOME INVOLVED IN THE

CONSIDERATION OF THE APPLICATION, BECAUSE IT WOULD BE SURPRISING IN THE CIRCUMSTANCES IF NO APPEAL WAS MADE AGAINST WHATEVER DECISION

THE CAA MAY COME TO. AN APPEAL WOULD BE LIKELY WHETHER OR NOT

THE SECRETARY OF STATE FOR TRADE HAD PREVIOUSLY GIVEN A DIRECTION THAT ALL THE APPLICANTS SHOULD BE ON EQUAL FOOTING, AND WHETHER OR NOT CAA AND THE ATLA HAD REACHED THE SAME CONCLUSION. WE SHARE

YOUR HOPE THAT A PUBLIC DISPUTE CAN BE AVOIDED. THE COMMENTS WHICH WE

MADE IN PARAGRAPH 5 OF OUR TELNO 672 ARE OF COURSE RELEVANT

TO THE APPEAL STAGE.

4. YOUR SECOND TUR. THE DOT ARE PROPOSING TO INTRODUCE A CIVIL

AVIATION BILL COVERING A NUMBER OF DIFFERENT ISSUES, THE BILL

IS BEING PREPARED FOR PUBLICATION EARLY IN THE NEW SESSION OF

PARLIAMENT. DOT MINISTERS ARE AWARE OF THE POINTS WHICH YOU HAVE

MADE.

CARRINGTON

FILES

MAED

HK & GD.

ECON D

MR CORTAZZI MISS BROWN MR MURRAY

[COPIES SENT TO CAD/DOT]

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