TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 272

CODE 18-77

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AIR SERVICES: HONG KONG/LONDON

1. Mr Roberts, the Under-Secretary in the Department of Trade responsible for international civil aviation, telephoned to say that the CAA had taken a decision on the additional carriers on the Hong Kong/London route. The view was that there was room for only one additional carrier and that this should be British Caledonian whose DC10 capacity provided a better alternative to what was being offered by CPA and Laker.

2. Mr Roberts said that the CAA told him that they would not have reached a different conclusion if the 1971 Act had in fact already been amended in terms of what is being sought by CPA's supporters.

3.

Mr Roberts said that the other airlines had, of course, the right to appeal and he expected them to do so. In the meantime, government departments should not comment beyond saying that the CAA's decision was subject to appeal to the Secretary of State for Trade. News Department should refer any enquiries directly to the CAA.

•

4 Mr Roberts said that he had already informed Mr Bray at the Hong Kong Government Office who was naturally disappointed but took the news in good part. He is preparing a telegram for despatch to Hong Kong today since the CAA decision was announced at 10.00.

17 March 1980

1. Marria

P Morrice

Hong Kong and General Department K247

cc: Miss Stoddart, MAED

Miss Whiting, News Dept.

233 4381

M. Mandy

1.

This is

mysising and disappointing decision.

I have discussed with Mr. Burton in HARD. De agreed

hat we

May

must wait to

see CPA's reaction. If

appeal (and the HK Gov't & support them);

h shall have to consider

whether to weigh

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