§ Mr. Jamieson
Having earlier rejected UK proposals for the full liberalisation of the UK-US aviation market, in September the US Government rejected UK proposals for a partial liberalisation of the market. Although the US Government has not put forward any counter-proposals, they have indicated that for a limited deal to be acceptable it would have to include unrestricted fifth freedom rights for all-cargo services. They would not, however, be ready to open up the US domestic market to competition.
The Secretary of State has asked for further work to be carried out on the possible impact on such a deal on UK airlines and UK business. We are involving a number of interests in this work.