TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 87

AKK 184/6

RECEIVED IN REGISTRY NO. 51

2 2 MAY 1980

DESK OFFICER

INDEX

ши

CONFIDENTIAL

PA

.

REGISTRY

Action Taken

222.5 Air zel

FM HONG KONG 21094ØZ MAY 82

TO IMMEDIATE FCO

TELEGRAM NUMBER 663 OF 21 MAY (1980)

INFO IMMEDIATE DOT

INFO ROUTINE HONG KONG GOVT OFFICE LONDON

52

L

YOUR TELNO 312: HONG KONG /LONDON ROUTE- CAA DECISION.

201

see

OUR SUBMISSION TO SECRETARY OF STATE FOR TRADE UNDER REGULATION

16(14) OF THE CIVIL AVIATION AUTHORITY REGULATIONS 1972 IS BEING CARRIED BY HAND TO LONDON ON FLIGHT BA20 TONIGHT. ARRANGEMENTS HAVE BEEN MADE FOR THE SUBMISSION TO BE COLLECTED AT HEATHROW BY HONG KONG COMMISSIONER'S OFFICE AND DELIVERED TO DOT.

2. FOLLOWING IS THE TEXT OF OUR SUBMISSION (EXCLUDING ANNEXURES):

BEGINS:

THE SECRETARY OF STATE IS ABOUT TO CONSIDER AND RULE UPON THE

APPEALS BY CATHAY PACIFIC AIRWAYS (CATHAY) AND LAKER AIRWAYS (LAKER) AGAINST THE REFUSAL OF THE CIVIL AVIATION AUTHORITY (CAA)

TO LICENSE THEM UPON THE HONG KONG/LONDON/HONG KONG AIR ROUTE. IT HAS BEEN INTIMATED TO THE HONG KONG GOVERNMENT THAT HE WISHES TO RECEIVE AND CONSIDER A SUBMISSION BY THEM UNDER REGULATION 16(14)

OF THE CIVIL AVIATION AUTHORITY REGULATIONS 1972 UPON MATTERS RELEVANT FOR CONSIDERATION UNDER S4(3)(B) OF THE CIVIL AVIATION ACT 1971, NAMELY MATTERS ''APPEARING TO THE SECRETARY OF STATE TO AFFECT THE RELATIONS OF THE UNITED KINGDOM WITH A TERRITORY OUTSIDE THE UNITED KINGDOM**.

THE DANGER

THE HONG KONG GOVERNMENT ON 9 AND 22 APRIL MADE ITS OWN LEGAL SUBMISSIONS AS A PARTY TO THE APPEALS OF CATHAY AND LAKER

RESPECTIVELY. THOSE ARGUMENTS WILL NOT BE REPEATED HEREIN, THE PRESENT DOCUMENT DEALS SOLELY WITH THE CONSIDERATIONS RELEVANT TO S4(3)(B), AND URGES THAT AN APPROPRIATE DIRECTIONUNDER S.4(3)(B) BE MADE BY THE SECRETARY OF STATE TO LICENSE CATHAY UPON THE ROUTE SO AS TO AVOID THE DANGERS DESCRIBED BELOW. THE HONG KONG GOVERNMENT WISHES TO EMPHASISE THAT IN ITS CONSIDERED

OPINION IF CATHAY IS NOT LICENSED TO FLY UPON THE ROUTE (EITHER IN PLACE OF OR TOGETHER WITH BCAL) THEN THERE IS LIKELY TO BE A SERIOUS DETERIORATION IN THE FEELINGS OF THE PEOPLE OF HONG KONG TOWARDS THE UNITED KINGDOM AND HENCE OF THE RELATIONS BETWEEN THEM. SUCH AN OCCURRENCE WOULD BE LIKELY TO HAVE NOT ONLY DELETEROUS EFECTS POLITICALLY, BUT ALSO ON TRADE INTENDED TO FLOW FROM THE UNITED KINGDOM TO HONG KONG: IN ADDITION, DUE TO THE CLOSE CONNECTIONS OF MANY HONG KONG CHINESE WITH CHINA, TRADE BY THE UNITED KINGDOM WITH THAT COUNTRY TOO MAY WELL BE AFFECTED. FOR INSTANCE, IT IS A LOCAL HONG KONG COMPANY WHICH CURRENTLY IS IN NEGOTIATION WITH THE CHINESE AUTHORITIES AND IS CONSIDERING WHETHER TO BUILD AND MANAGE AS A JOINT VENTURE A NUCLEAR POWER