§ 3.15 p.m.
§ LORD OGMOREMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government what is the present position under the Agreement between Her Majesty's Government and the United States Government empowering a British designated airline to operate between San Francisco and Tokyo; and what is the weekly loss to B.O.A.C., the British designated airline, as a result of the failure to implement this Agreement.]
THE EARL OF GOSFORDMy Lords, British Overseas Airways Corporation's round-the-world service via San Francisco and Tokyo is provided for in the Air Services Agreement between the United Kingdom and the United States. Under United States law, however, an operating permit must be obtained from the Civil Aeronautics Board before the service can begin. The Agreement stipulates that such permits shall be granted without undue delay. Representations have been made to the United States authorities both here and in Washington, about the delay in the grant of this permit, which appears to be due mainly to the opportunities which the procedure of the Board provides for lengthy intervention by other airlines. It is now expected that the Board's procedure will be concluded shortly and that the permit will be granted early next month.
With regard to the second part of the noble Lord's Question, I cannot give any precise estimate.
§ LORD OGMOREMy Lords, may I ask the noble Earl whether he can give an imprecise one, because I think the House should know to what extent B.O.A.C. are being prejudiced by the 759 failure of the United States Administration to carry out this Agreement?
THE EARL OF GOSFORDMy Lords. the noble Lord must be fully aware that it is always difficult to estimate revenue which would be earned initially by a new service. I am informed, however, that it will be something of the order of £25,000 per week.