TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 114

DRAFT TELEGRAM

TO: HONG KONG

CONFIDENTIAL

IMMEDIATE

PERSONAL FOR GOVERNOR

Priority

Repeat/to Ottawa (for Roberts), Washington

This will

This disin

London-Hong Kong Air Route Appeals

1 The Secretary of State for Trade has considered the appeals

submitted by Cathay Pacific Airways (CPA) and Laker Airways

against the Civil Aviation Authority's decision to licence

British Caledonian Airways (BCAL) on this route.

2 He has also considered the submission by the Hong Kong

Government which urged him to make a direction in favour of

CPA, using his powers under Section 4 of the Civil Aviation Act

1971 (your telnos. 668 and 669).

3

The Secretary of State has decided to direct the CAA to

issue licences to both CPA and Laker on the same terms as that

they have already granted to BCAL, but without prejudice to

is satoject

& the concerning

I the

Prime Ministi

Which we well

CPA's existing rights between Hong Kong and Bahrain.

台

a)

that the CAA had given undue weight to the

infor you to

asap

x

In reaching this decision the Secretary of State considered -

traffic forecasts of BCAL and Cathay, and had

been unduly dismissive of the possibility of

substantial new traffic being generated by a

wider choice of services;

b) that the Authority had placed too much emphasis

on the economics of the proposed additional

service in the short term;

1