TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 170

CONFIDENTIAL

LOND

CHA)

HKK 184

PRIVY RECEIVER 9:

15 APR 1980

/

1J15.4

31

Foreign and Commonwealth Office

London SW1

PA

15

7 April 1980

HONG KONG/UK AIR ROUTE:

CIVIL AVIATION AUTHORITY DECISION

The decision of 17 March of the Civil Aviation Authority

(CAA) to license British Caledonian (BCAL) to operate on the

London-Hong Kong route, and to exclude Cathay Pacific Airways (CPA)

from it, is worrying. CPA are appealing to you against the

decision and I understand that the Hong Kong Government, who participated in the hearing, will make submissions in the appeal.

They also intend to make separate representations to you on aspects of the case which did not form part of the evidence placed before the Authority.

2.

There has been a very sharp reaction in Hong Kong, by no

means confined to those with a direct interest in CPA. The Governor

of Hong Kong is seriously disturbed by signs that many people see the decision as an example of Britain taking advantage of its

constitutional relationship with Hong Kong. He believes that if the

decision is upheld the tide of reaction could become stronger than any similar movement in his experience, including that over textiles. This continuing resentment, sustained as BCAL aircraft started to

The Rt Hon John Nott MP

Secretary of State for Trade

Department of Trade

1 Victoria Street

London SW1H OET

/use