HL Deb 10 March 1977 vol 380 cc1163-4

3.19 p.m.

Lord ORR-EWING

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will suspend negotiations on the Bermuda Agreement until such time as the landing rights for Concorde in the USA are clarified.

Lord ORAM

My Lords, the Government's objective in negotiating a new air services agreement with the United States is to obtain fairer balance in the benefits to our airlines. The present agreement is running out. To suspend negotiations would neither be in our interest nor would it help Concorde, and we have no intention of so doing.

Lord ORR-EWING

My Lords, is the noble Lord aware that significant progress has been made in firmness and resolution of the attitude that Her Majesty's Government and the French Government have taken concerning landing rights for Concorde? While continuing with this notion, and while being ingenious in devising possible sanctions, will the Government also remember that it may be necessary to devise a formula which is face-saving as it concerns certain people in the New York area?

Lord ORAM

My Lords, I acknowledge what the noble Lord has said about the firmness of the Government's attitude in this matter and we can, as he has indicated, be hopeful of good results from it. But I think that the suggestion in his Question is taking so-called firmness much too far and would, to use the hackneyed phrase, be counter-productive. My right honourable friend the Prime Minister is probably at this moment putting forward Britain's case in a very persuasive manner.

Lord STRATHCONA and MOUNT ROYAL

My Lords, arising out of the noble Lord's first Answer, is it not a fact that the balance of advantage would lie with the Americans if the Bermuda Agreement was suspended, because they have more airlines flying more flights across the Atlantic at the present time than we have?

Lord ORAM

Yes, my Lords. It is our view that the present agreement is favourable to the Americans—it was we who asked for its renegotiation—and to suspend negotiations would, in our view, be something which the Americans would welcome and would probably be to our disadvantage.