TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 256

GRS 700 UNCLASSIFIED

FM BCARFE HONG KONG 1910012 MAR

TO IMMEDIATE DEPARTMENT OF TRADE (CAIR)

TELNO ALLOT 13 OF 19 MARCH, 1980

INFO IMMEDIATE DEPARTMENT OF TRADE (CRE4) AND F.C.Q.

FOR ROBERTS FROM WILSON. PARAGRAPH 2 OF M.I.P.T.

184

TOA

AKK 216

RECEIVED IN REGISTRY NO. 51

2 6 MAR 1980

DESK OFFICER INDEX

PA

REGISTRY Adion Teken

тоза-4

1. ARTICLE REFERRED TO APPEARS UNDER HEADLINE QUOTE U.K. DECISION

TO BAR CPA SPARKS PROTEST UNQUOTE AND READ QUOTE BUSNINESS LEADERS YESTERDAY BLASTED THE BRITISH CIVIL AVIATION AUTHORITY FOR ITS QUOTE SHOCKING AND INCOMPREHENSIBLE UNQUOTE DECISION DENYING CATHAY PACIFIC AIRWAYS TO LICENCE TO OPERATE A SERVICE TO LONDON AND GIVING THE RIGHT TO ANOTHER BRITISH AIRLINE.

2. THEY STRONGLY URGED A RE-EXAMINATION OF BRITISH-HONG KONG

RELATIONS IN TERMS OF TRANSPORTATION AND HONG KONG'S ABILITY TO

PROTECT ITS OWN AIR RIGHTS.

3. BRITAIN'S DECISION TO GIVE THE SECOND LICENCE FOR THE ROUTE

TO BRITISH CALEDONIAN RATHER THAN TO HONG KONG BASED CPA WAS A

POLITICAL DECISION WHICH DID NOT TAKE INTO ACCOUNT HONG KONG'S IDENTITY AS A TRADING CENTRE IN ITS OWN RIGHT, THE LEADERS SAID.

4. NOR DID BRITAIN CONSIDER THE RECIPROCITY IN TRADE, WHICH IT HAS BEEN ASKING AND GETTING FROM HONG KONG, SAID THE DIRECTOR OF THE HONG KONG GENERAL CHAMBER OF COMMERCE, MR. JIMMY MCGREGOR.

5. HE RECALLED THAT WHEN THE BRITISH SECRETARY OF STATE FOR TRADE,

MR JOHN NOTT, RECENTLY VISITED HONG KONG, THE MAIN TENOR OF HIS TALKS WAS QUOTE IF YOU SCRACTH OUR BACK, WE'LL SCRATCH YOURS UNQUOTE

6. BY THE CIVIL AVIATION AUTHORITY'S DECISION, QUOTE BRITAIN HAS NOT SCRATCHED HONG KONG'S BACK. IT HAS WOUNDED IT, UNQUOTE SAID MCGREGOR.

7. THIS HAPPENS AT A TIME WHEN HONG KONG HAS BEEN LAUNCHING A QUOTE

BUY BRITISH UNQUOTE DRIVE INITIATED BY SUCH ORGANISATIONS AS THE CHAMBER AND THE CONFEDERATION OF BRITISH INDUSTRIES, WHICH MR. MCGREGOR HIMSELF REPRESENTS HERE.

8. THE BRITISH EXPLANATION REGARDING THE SUTIABILITY TO THE ROUTE OF BRITISH CALEDONIA'S DC10S TO CPA'S BOEING 747 TOTALLY IGNORES THE FACT THAT CPA'S AIRCRAFT HAVE ROLLS ROYCE ENGINES, WHICH ARE BRITISH-MADE AS OPPOSED TO DC10 ENGINES WHICH ARE AMERICAN.

9. IN FACT, BY THE END OF THIS YEAR WHEN CPA WILL HAVE SOLD ALL ITS BOEING 7075, IT WILL BE THE WORLD'S ONLY AIRLINE WITH A FLEET POWERED BY ALL ROLLS ROYCE ENGINES.

/10.