TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 18

CONFIDENTIAL

AIR TRANSPORT AND COMMERCIAL FLYING) AS EXTENDED TO THE CHANNEL ISLANDS, TO CARRY PASSENGERS OR GOODS BY AIR FOR HIRE OR REWARD UPON ANY SCHEDULED JOURNEY BETWEEN TWO PLACES BOTH OF WHICH ARE IN THE CHANNEL ISLANDS''.

IT IS SUCH A PROVISION IN RESPECT OF HONG KONG AND CTHER TERRITORIES, WHICH I SHOULD HAVE EXPECTED WOULD EXIST.

IN ANY EVENT IS SEEMS CLEAR THAT ANY EXEMPTION GRANTED TO ANY CARRIER SHOULD BE ACHIEVED BY WAY OF AN ORDER IN COUNCIL.

CONSIDERABLE DOUBTS ARE ALREADY HELD IN RESPECT OF THE

DESIRABILITY IN PRACTICAL TERMS OF EVEN THE EXISTING EXEMPTION, TO GRANT A FURTHER EXEMPTION WOULD CLEARLY BE UNDESIRABLE

- PARTICULARLY HAVING REGARD TO THE CHANGED CIRCUMSTANCES

SINCE 1964 AND ESPECIALLY IN THE WAKE OF THE RECENT HEARINGS,

I BELIEVE THAT PROVISIONS FOR EXEMPTION OF ANOTHER CARRIER

(SHOULD POWER TO MAKE SUCH A PROVISION EXIST) IS AN OPTION WHICH SHOULD NOT BE CONSIDERED.

(B) THE ACTUAL EXEMPTION

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YOU WILL HAVE NOTED THAT THE ACTUAL EXEMPTION, SHOULD IT HAVE ANY VALIDITY, REFERS TO ROUTES COVERED BY AN AIR SERVICES AGREEMENT ENTERED INTO

BY HER MAJESTY'S GOVERNMENT''. I HAVE SERIOUS DOUBTS AS TO WHETHER THE LONDON/HONG KONG CABOTAGE ROUTE IS SO COVERED BY SUCH AN AIR SERVICES AGREEMENT. SHOULD THAT BE SO, AND I AM CHECKING THE POSITION, EVEN BA'S EXEMPTION IN RESPECT OF THE

ROUTE IS DOUBTFUL.

3. THE ACTING GOVERNOR HAS SEEN AND AGREED THIS TELEGRAM AND

M.I.P.T.

CATER

MINIMAL

HK & GD

HEAD/MAED

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CONFIDENTIAL

COPIES TO:

HONG KONG GOVT OFFICE, LONDON