TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 243

CONFIDENTIAL

Brief No 6

:

C Civil Aviation Bill

Line to take

8 The Secretary of State will wish to maintain the line that he did not wish to be seen to be trying to change the rules of the game after the contest was joined for the Hong Kong-London route and for that reason did not feel it appropriate for HMG to re-define "British airline" in the new Civil Aviation Bill. The Government will however give sympathetic consideration to an amendment to this effect, if laid and the DOT have been giving some thought to a possible draft.

Background

9 The Swire Group, owners of CPA, conducted a vigorous campaign to incorporate a revised definition of "British airlines" in the Civil Aviation Bill before it was laid. Ministers decided against this but indicated in the Second Reading debate that the Government would consider an amendment sympathetically if laid. Mr Tebbit has recently sent a possible draft to Mr Cranley Onslow, MP but it is still for discussion how the amendment should be tabled. The Hong Kong Government has been made fully aware of the Secretary of State's views on this subject but nonetheless may want to take advantage of his presence in Hong Kong to have another go.

D Hong Kong/West Coast USA Route

Line to take

10 The Secretary of State could say that he is pleased at the prospect that at least one British carrier might soon be operating across the Pacific; as to which, if not both, it would be inappropriate for him to comment because of his appellate position in relation to the Laker application.

Background

11

Laker Airways have applied to the Hong Kong Air Transport Licensing Authority (IKATLA) and the CAA for a licence to operate across the Pacific taking in both Vancouver and Tokyo as inter- mediate points en route. We understand that CPA is about to file an application with the HKATIA to operate to Los Angeles and also has aspirations to operate to Vancouver as a separate service. It is out of the question that the Canadians would accept two British carriers for the Hong Kong-Vancouver service and the Hong Kong Government would be distraught at the thought that Laker should have it in preference to CPA. The Hong Kong-Los Angeles route can theoret-- ically take any number of carriers and the Hong Kong Government are not therefore likely to be opposed to Laker operating the route in addition to CPA provided that Laker do not operate vie either Vancou or Tokyo. (An operation via Tokyo would be at the expense of CPA, which the Hong Kong Government would not want.)