TNAG-0935-FCO40-1154-Relations-between-Hong-Kong-and-Iran-1980 — Page 96

X

Mr Tatham

Mr Miers

RESTRICTED

Reference

HKK020/4

НКК

RECEIVING

1EAR

VARICER

INDEX

PA

Action Tek

BRITISH AIRWAYS AND THE IRANIAN AIR FORCE

1. MAED were told yesterday morning by the International Division of British Airways that they had been approached by the Iranians to ascertain whether, in principle, they would be prepared to take on a servicing contract in London of 747s and 707s belonging to the Iranian Air Force. Some 20 planes would be involved on a recurrent basis. The overhaul work would include both components and engines. The contract would be worth several million pounds per year. The work had previously been done for the Iranian Air Force in New York by TWA.

2"

I spoke to Mr Wilson at British Airways and stressed to him that Ministers would be extremely concerned if British Airways were to take on such a contract. Not only would it look as though we were deliberately rushing in to take American business stalled by virtue of the present crisis but it could do considerable political damage in

present circumstances. Mr Wilson said that this confirmed very closely British Airways' own feelings. It was reluctant in any case to under- take the contract. In the light of our conversation, he would ensure that British Airways refused to undertake the servicing job. It would, however, be unfortunate if other European airlines were to step in to take up such a lucrative contract.

3. I think it would be helpful for us to inform other members of the Nine about this approach by the Iranians so that they too may consider taking similar action with their national airlines if they also receive such approaches. We should also consider informing British authorities in Hong Kong.

15 April 1980

SMJ Lamport

Middle East Department

CODE 18-77

SS 8/78

CC

MAED

FRD

Pl.

NAD

Mr J C Moberly AKGD

1. ensure that

Hory Kny

Ade

informed.

We must see any

tel. before despatch

$218/4

er willinghe

Xing x is right

mehre

concement.

Hann M. Daly

draft

hendi clea

telegram with th

PAJIS.C

and MAED will couumbly concerted intruding & sull prenting

avery infortunate if

If and be

wwert athe thre

de granians.

RESTRICTED Serviced in fit my ramy

this peet

wrink

and CRA's application de munt me and CMA's

пукватовать,

this out.

we cament entirely he

15/4