TNAG-0964-FCO40-1183-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 93

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WELL BE INFLUENCED BY CPA'S DECISION''. HE ENDED BY SAYING ''WHILE HE APPRECIATED THE DECISION WAS IMPORTANT AND DIFFICULT FOR CPA, THEY WOULD NOT BE PUTTING PRESSURE ON CPA IF THEY DID NOT BELIEVE THAT THE L1011 WAS A GOOD AIRCRAFT''.

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CONTEMPORANEOUSLY, THE HONG KONG GOVERNMENT WAS TELEGRAPHED AND INFORMED THAT ....CATHAY'S CHOICE OF WIDE-BODIED AIRCRAFT MIGHT WELL HAVE A DOMINO EFFECT IN THE FAR EAST. ROLLS ROYCE HAVE ESTIMATED THAT AS MUCH AS PDS STG 150 MILLION OF BUSINESS FOR THEM OVER THE NEXT THREE OR FOUR YEARS MIGHT TURN ON CATHAY'S DECISION''. AT THAT TIME HMG WAS SERIOUSLY CONCERNED AS TO

THE FUTURE BOTH OF ROLLS ROYCE AND CONSEQUENTIALLY OF LOCKHEED. (E) ON 15 MARCH 1974 THE CHAIRMAN OF CATHAY MINUTED HIS DIRECTORS ARGUING THE PROS AND CONS OF THE VARIOUS AIRCRAFT, POINTING OUT THAT ''DURING DISCUSSIONS WITH THE DTI IN LONDON. IT HAS BEEN MADE CLEAR THE GREAT IMPORTANCE WHICH THE BRITISH GOVERNMENT ATTACHES TO CPA'S DECISION AND GIVING THEIR REASONS, AND FINALLY RECOMMENDED THAT CATHAY PURCHASED THE L1811 AS HMG HAD REQUESTED.

(F) ON 18 MARCH 1974 THE CATHAY BOARD AGREED SO TO DO. COMMENT:

IT IS CLEAR THAT CATHAY, OUT OF LOYALTY TO BRITAIN, AGREED TO CHANGE A FINALISED DECISION AT THE REQUEST OF THE MINISTER AND OFFICIALS AT THE DTI. NATURALLY THIS IS NOT KNOWN OUTSIDE A VERY SMALL CIRCLE AND IT IS THE EARNEST DESIRE OF THE HONG KONG GOVERNMENT THAT THIS SHOULD REMAIN THE POSITION, FOR THERE IS NO DOUBT WHATSOEVER THAT SHOULD THIS BECOME IN ANY WAY PUBLIC KNOWLEDGE IN HONG KONG THE FEELINGS OF OUTRAGE WOULD BE TREMENDOUS, AND THERE WOULD BE CONSIDERABLE POLITICAL EMBARRASSMENT.

IT WOULD APPEAR TOTALLY UNJUST THAT CATHAY SHOULD BE PREVENTED FROM

FLYING UPON THE HONG KONG/LONDON ROUTE AS A DIRECT RESULT OF A DECISION TAKEN AT THE EXPRESS REQUEST NOT ONLY OF THE BRITISH GOVERNMENT BUT OF THE VERY DEPARTMENT WHICH CONTROLS AIR LICENSING,

IT IS AN ODD IRONY THAT IN 1974 BCAL RESISTED SIMILAR PRESSURE AND IN FACT BOUGHT DC10S.

RECIPROCITY.

POLITICALLY, IT IS IMPOSSIBLE TO EXPLAIN TO THE PUBLIC IN HONG KONG WHY THE UNITED KINGDOM SHOULD ALLOW SINGAPORE AND OTHER ASIAN NATIONS THE RIGHT TO FLY TO LONDON ON A RECIPROCAL BASIS WHILST AT THE SAME TIME DENYING THE HONG KONG AIRLINE, CATHAY, THE SAME PRIVILEGE. IT IS SEEN BY CHINESE PEOPLE AS CYNICAL EXPLOITATION OF HONG KONG'S STATUS AS A COLONY BY THE PARENT COUNTRY. THIS, POLITICALLY, IS A MOST UNFORTUNATE IMPRESSION TO REVIVE AND HAVE VOCIFEROUSLY EXPRESSED, ESPECIALLY AT A TIME WHEN BRITAIN'S PAST AS A COLONIAL POWER IS COMING TO BE LESS WELL REMEMBERED IN THE WORLD AT LARGE, AND IN ASIA IN PARTICULAR, IT MUST NEVER BE FORGOTH THAT THE CHINESE FAMILY IS A CLOSELY BOUND UNIT, AND THAT MOST OF THOSE LIVING IN HONG KONG WILL HAVE CLOSE RELATIVES LIVING IN CHINA OR ONE OF THE OTHER ASIAN COUNTRIES.

VALUE OF HONG KONG TRAFFIC RIGHTS.

IT IS WELL KNOWN TO THE PEOPLE OF HONG KONG THAT OVER THE PAST

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DECADES