§ Mr. McCrindleasked the Secretary of State for Trade if he will make a statement on the progress of Her Majesty's Government's discussions with Canada on airline services between the two countries.
§ Mr. TebbitAt the talks held in London during April the Canadian delegation was not willing to agree to access for United Kingdom airlines to the routes to Western Canada which have been a Canadian monopoly for 14 years unless the United Kingdom agreed to a further unbalancing of the arrangements by granting Canadian airlines unreciprocated rights to carry traffic between London and destinations of their choice between London and Hong Kong including the London to Hong Kong cabotage route itself. The Government believe that an exchange of rights for airlines of both614W countries to serve Western Canada would be fair and that the present Canadian monopoly is against the interests of the travelling public in both countries as well as being unfair to United Kingdom airlines.
After unsuccessful talks over two years we therefore saw no alternative but to give notice that we could not continue the 1966 understanding which allows Air Canada to operate non-stop services to Western Canada after 1 April 1981. We have given a long period of notice and hope that in the meantime the Canadian Government will agree to further discussions which we have sought with a view to coming to fair and equitable arrangements.