TNAG-0965-FCO40-1184-Air-services-between-the-UK-and-Hong-Kong-1980 — Page 9

GPS 500

CONFIDENTIAL

CONFIDENTAL

ник HEL 184

REGIVER

14 NOV 1980

(Tis)

DESKBY 130900 Z

FM HONG KONG 130805Z NOV 80

TO IMMEDIATE FCO

TELEGRAM NUMBER 1498 OF 13 NOVEMBER

PERSONAL FOR CLIFT FROM JEAFFRESON.

INDEX

No

18.

CP Taken

Awis

PLEASE PASS FOLLOWING TO GOVERNOR BEFORE HIS MEETING WITH MR NOTT. FROM OUR INFORMAL DISCUSSIONS TODAY WITH ROBERTS OF DOT IT SEEMS THAT AGREEMENT MAY BE POSSIBLE ON THE BASIS OF AIRLINES BEING LICENSED BY CAA IN RESPECT OF ROUTES INTO AND OUT OF LONDON AND BY ATLA ON ROUTES INTO AND OUT OF HONG KONG. THE REGULATIONS APPLICABLE TO ATLA WOULD REFLECT THOSE APPLICABLE TO THE CAA. THIS WOULD MEAN THAT THE GOVERNOR WOULD HAVE POWERS TO DIRECT ATLA AND THERE WOULD BE A RIGHT OF APPEAL FROM ATLA TO THE GOVERNOR . 2. AS FAR AS RIGHTS BETWEEN HONG KONG AND LONDON ARE CONCERNED, LICENCES FROM BOTH CAA AND ATLA WOULD BE NECESSARY. FOR BRITISH BASED AIRLINES THERE WOULD BE A HEARING BEFORE THE CAA. IF HKG WISHED TO PUT A VIEW TO CAA IT WOULD DO SO VIA DOT OR, IF NECESSARY,

DIRECT TO THE CAA AND COULD EXPECT DOT AND CAA TO HAVE REGARD TO SUCH VIEWS. ASSUMING THE CAA FINDING WAS NOT TOO FAR AGAINST HONG KONG'S INTERESTS, THE GOVERNOR WOULD DIRECT ATLA TO ISSUE LICENCES TO ACCORD WITH THE CAA FINDING. FOR HONG KONG-BASED AIRLINES, THERE WOULD BE A HEARING BEFORE ATLA AND THE SECRETARY OF STATE WOULD DIRECT THE CAA TO ISSUE LICENCES TO ACCORD WITH THE

ATLA FINDING PROVIDED IT WAS NOT TOO FAR CONTRARY TO BRITISH INTERESTS. TO COMPLETE THE SYMMETRY, BA WOULD LOSE ITS PRESENT EXEMPTION FROM LICENSING BY ATLA.

3. THE NEXT STEP IS FOR US TO WRITE UP THE DOT PROPOSAL AS WE UNDERSTAND IT AND TO SEND THE RESULTS TO ROBERTS FOR HIM TO CONFIRM THAT WE HAVE GOT IT RIGHT. ROBERTS AND I WOULD THEN SEEK THE AGREEMENT OF OUR RESPECTIVE ADMINISTRATIONS TO THE PROPOSALS. WE WOULD TRY TO IRON OUT ANY DIFFERING VIEWS ON THE PROPOSALS IN LONDON IN THE SECOND WEEK IN DECEMBER ( WHEN I SHALL BE ON LEAVE).

IF THE RESULT IS AGREEMENT BETWEEN US ON THE PROPOSALS, WE WOULD AM TO HAVE SOUGHT XCO'S ADVICE BY END DECEMBER. THEREAFTER AN ORDER-IN COUNCIL WOULD BE NECESSARY AT THE LONDON END AND REVISED REGULATIONS AT THE HONG KONG END TO BRING ATLA INTO LINE WITH THE CAA. ROBERTS AND I ESTIMATE THAT THIS PROCESS COULD BE COMPLETED BY THE END OF MARCH 1981.

4. I HAVE STRESSED, AND ROBERTS HAS FULLY ACCEPTED, THAT OUR DISCUSSIONS TODAY HAVE BEEN OF AN EXPLORATORY INFORMAL CHARACTER AND THAT NEITHER SIDE IS COMMITTED.

5. IF THESE PROPOSALS FIND ACCEPTANCE ON BOTH SIDES, THEN THERE WOULD BE NO SIGNIFICANT PROBLEM IN BRINGING LAKER ONTO THE ROUTE. LAKER ALREADY HAS A LICENCE FROM CAA AND THE GOVERNOR COULD DIRECT ATLA TO ISSUE A LICENCE FOR HONG KONG. IF ALL WENT WELL, THE

CONFIDENTIAL

/LAKER

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