HL Deb 18 July 1978 vol 395 cc145-6

2.42 p.m.

Lord TREFGARNE

My Lords, on behalf of my noble friend Lord Kinnoull, who has been unexpectedly called away, I beg leave to ask the Question which stands in his name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will make a Statement on the recent discussions with the United States on the Bermuda II Agreement.

Lord WINTERBOTTOM

My Lords, in discussions in London on 21st and 22nd June, United States officials proposed certain additions to Bermuda II which the Government are now considering. We explained the importance of moving some existing services to Gatwick, and they agreed to discuss the question further with their airlines.

Lord TREFGARNE

My Lords, I am greatly obliged, as will my noble friend he, I am sure, for that reply. Can the noble Lord say what quid pro quo the Government propose to extract for any concessions they grant to the Americans? Can he also say whether it is intended that British Caledonian shall be granted additional stopping points, or "gateways" as they are called, in the Southern United States?

Lord WINTERBOTTOM

My Lords, the quid pro quo, as I understand it, was that Pan-American would restart its flights from Boston, which it had given up, and the "pro" or the "quid" was that some American airlines would move a substantial part of their operations from Heathrow to Gatwick. I am afraid I cannot answer the question about British Caledonian which was not immediately connected with these discussions.

Lord TREFGARNE

My Lords, is it not the case that the question of British Caledonian's rights will be fundamental to any concession which the Government may grant to the Americans in this matter? Is it not the case that British Caledonian have recently applied for a number of licences to operate to additional points in the United States, and if these licences are granted the Americans will have to grant additional gateways to accommodate them?

Lord WINTERBOTTOM

My Lords, the Civil Aviation Authority have to consider British Caledonian's applications. In view of the responsibility of the Secretary of State for Trade to decide any appeal from their decision, it would at this time be wrong for me to comment.