TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 27

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Following a public hearing convened by the Hong Kong Government on the three applications and after the airlines' proposals were carefully examined, the Air Transport Licensing Authority decided on November 30 last year to grant licences to CPA and British Caledonian to operate flgihts on the Hong Kong-Londer route. CPA has been given three flights every week and British Calendonian four flights every week. Laker Airways' application was turned down.

The Attorney-General, Mr. John Griffiths, who represented the Hong Kong Government, pointed out at the conclusion of the hearing that "CPA has had all along been based in Hong Kong and fully understand the needs of Hong Kong and is willing to accept the views of the public. The airline has air rights in the Persian Gulf. Moreover, because it is equipped with many large-capacity Boeing 747s, the requirements of passengers can be fully met during the peak season." Mr. Griffiths explained clearly the reason for allowing CPA a licence to operate.

A similar hearing was conducted by the British Civil Aviation Authority in London in December last year. On March 17, the Authority announced that a licence to operate had been awarded to BCA and application by CPA had been rejected. The Authority said the licence was not given to CPA because the airline could not possibly afford to have Jumbo 747s (with a capacity of 410 passengers) under its present state of business. In fact, this reason is hardly convincing. Obviously, the Authority has not considered the question of trade reciprocity, nor has it attached importance to the. wishes of the Hong Kong Government.

CPA has decided to lodge an appeal with the Secretary of State for Trade and will spare no effort to take the case even to the highest authority. It has the full support of the Hong Kong Government. In fact, at issue is a matter of principle and something more than the right to operate an air service is at stake here. If those in charge in other lines of business in Britain choose to pursue sinilar protectionist policies, the implications for Hong Kong will be even wider. Moreover, a precedent will be set for international trade negotiations and other countries will not look to Hong Kong as an equal partner.

By then, Hong Kong can hardly remove die image of a Colony and firms in Hong Kong will be taken as second-rate companies and Hong Kong residents will be treated the second-class citizen.

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