3
CONFIDENTIAL
D
E
compete effectively in the world civil air transport market.
This very general guidance does not prevent the CAA from
licensing other airlines on a particular route. As Hong Kong's
fears about the effects of the 1976 Guidance are groundless,
the question of intervention by theSecretary of State for Trade
does not arise.
4.
The definition of "British airline" in the 1971 Civil Aviation
Act does on the other hand place CPA at a disadvantage as we
acknowledged in FCO telegram No 672 to Hong Kong. If Mr Nott's
decision not to issue a direction amending the definition meant
the end of CPA's hopes of a licence, it would of course be neces-
sary to go much more deeply into the disputed question of vires
to see if there was any chance of overcoming the doubts that have
been expressed about the propriety of a direction. We continue
to believe however that it is quite possible that CPA will be
granted a licence and that if they are not there will be an
opportunity for their interests to be taken into account through
the appeal procedure before a final Ministerial decision (Miss
Stoddart's submission of 17 August).
5. We have asked the DOT if they cannot be more forthcoming
about the amendment of the Civil Aviation Act, but they are not
prepared to go beyond what is contained in para 4 of the draft
CONFIDENTIAL
/reply
No comments yet.
Private notes are available after approval.