810.79611 Tri-Motors Safety Airways/169

The Chargé in France (Armour) to the Secretary of State

No. 9991

Sir: I have the honor to amplify herewith my telegram No. 513 of November 5, 6 p.m., 1929, with regard to the permission desired by the New York, Rio and Buenos Aires Line to operate over Martinique, Guadeloupe and French Guiana and that for the Pan American Airways, Incorporated, to operate over the first two cited islands.

A definitive conversation with the Ministry for Foreign Affairs in the matter was not had until the evening of November 4, although the subject had been daily pressed, due to the fact that it was hoped the note addressed by the Department to the French Ambassador at Washington on June 12, proposing an agreement with regard to aerial navigation, would be found and the proposal furnish a basis upon which a more satisfactory arrangement for the operation of the American Companies might be had. As stated in my above cited telegram the note in question has not been received, either by the Ministry for Foreign Affairs nor by that for Air. The former Ministry had been convinced that the note must have been forwarded by the Air Attaché in Washington direct to his own Department, but it develops that such is not the case. M. Claudel was, in consequence, asked to report by telegraph with regard to the disposition made of the document. In the meantime copies of the note and its enclosure were left with the Foreign Office for study by the appropriate French authorities and the Foreign Office informed of the importance of the proposal and requested to render an early decision.

To-day the Ministry for Foreign Affairs telephoned, stating that a telegram had come from M. Claudel to the effect that he had never received the Department’s note of June 12. In order to obviate further delay incident to this misunderstanding I am immediately addressing to the Ministry for Foreign Affairs a note requesting that the proposal, copies of which the Embassy has now furnished, be [Page 633] given earnest consideration. The Ministry promises, upon the receipt of this note, at once to study the project of agreement.

The conversation of November 4, although not productive of the results which might have been wished, was satisfactory in that it cleared the atmosphere concerning the French viewpoint and the cause of delay in according permissions of the nature envisaged. A frank statement of motives was for the first time evoked from the pertinent Foreign Office official, who said that in his remarks he reflected not only the views of his Ministry but also those of the other Ministries concerned.

He asserted that France had no present desire to secure permission for French planes to fly over American territory and that in consequence his Government was not in the least interested in the American offer of reciprocal treatment. The Embassy observed in response that while it appreciated his frankness the position assumed does not accord with the customary relationship of friendly nations which, in such matters, is predicated upon reciprocity. It was added that the trend in aerial navigation is, as in navigation of the seas, towards freedom of communication, provided of course considerations of sovereignty are observed and reciprocal privileges vouchsafed. Moreover, France has itself recognized this principle in becoming a party to the Convention of 1919 relating to the regulation of aerial navigation,85 so that its attitude in the case of the West Indies shows a disposition to adopt towards the United States a different attitude than that demonstrated towards other nations. The official replied by recognizing the weight of some of the arguments advanced but reiterating his assertion that in the present situation his Government is not interested in considerations of reciprocity.

He stated that the matter is regarded as a commercial one, not one of reciprocal courtesies, and that France desires to receive value given for any privileges which it may give in the geographic zone in question,—in effect, that it is a matter of dollar for dollar. The Aéropostale, he added, finds itself under heavy competitive pressure from the American air lines and it is the French Government’s intention to secure for it advantages calculated to enable it to compete on a favorable basis with its “rivals”. The American companies, desiring permission to fly over French possessions in the West Indies and South America, the opportunity is presented to gain for the Aéropostale the advantages which it seeks. It is recognized that the Government of the United States has no control over the engagements entered into by American airways but the companies themselves, if they sufficiently desire to secure the flying permits, must, it is said, negotiate with the Aéropostale as a price for the privilege. [Page 634] The French Government will persevere in utilizing the opportunity for insisting on favorable inter-company arrangements on behalf of the Aéropostale.

The Government expresses its willingness to continue to grant freely permits for tourists, explorers and others making isolated flights over its territories. It views, however, the contemplated flights by the planes of the New York, Rio and Buenos Aires Line and the Pan American Airways as falling within another category. Although the Embassy stressed the fact that no mail contracts or other concessions were being asked and that the permission requested is of merely a temporary character, the official of the Foreign Office stated that the French Government can only regard the consecutive flights by a number of planes belonging to companies engaged in commercial aviation as a commercial venture and therefore that no precedent has been set by the Government of the United States in granting permits to French planes since the conditions are not parallel, none of the French planes involved being engaged in regular aerial navigation.

Under these circumstances and the desire to assist the Aéropostale the French Government will not recede from its insistence that the continued operation after the termination of the two months period be contingent upon the negotiation of an agreement between the New York, Rio and Buenos Aires Line and Aéropostale. The Ministry for Foreign Affairs is not in a position to elucidate the nature of the projected agreement, leaving it to the Aéropostale to make known its desires in that connection. The Government, however, is prepared to concede that the permission for the New York, Rio and Buenos Aires Line shall not be contingent upon an agreement between the Pan American Airways and the Aéropostale. It was likewise induced to express the belief that it would be feasible to extend the two months permit, even though an agreement had not been reached, if negotiations were commenced within that period which gave promise of an ultimate favorable accord.

The position assumed is perhaps to be explained by the fact that the Aéropostale is not sufficiently capitalized to compete with the American Companies,—having a present capital of only 20,000,000 francs and an authorized capital of but 50,000,000 francs. Moreover, the only concession of consequence which the Aéropostale has, at least the only one which might be used for bargaining purposes with American aviation interests, is that granted by Venezuela. It is therefore assumed that the Government contemplates overcoming these deficiencies by forcing an agreement—which could not be gained by virtue of the companies’ financial prestige or the inducement of important concessions held by them—with competing lines, such agreement presumably envisaging a combination of American and [Page 635] French lines permitting the latter to have the benefit of the traffic over certain areas. Although at this distance it is difficult to judge the situation, it may be that it would warrant the American lines to accord minor concessions in order to create good will between French and American interests in face of what would seem to be a greater potential threat—competition by the German Luft-Hansa or its subsidiary.

The Ministry for Foreign Affairs admitted that it had been intended to delay acting upon the request of the Pan American Airways to fly over Guadeloupe and Martinique until such time as it could be ascertained what attitude the New York, Rio and Buenos Aires Line would adopt in according favorable terms to the Aéropostale. The Embassy pointed out the inequity of such procedure, not only since the Pan American request antedates that of the “Nyrba” Line but, also, because it is unfair to base the treatment accorded one company upon the action of another company with which it has no connection. The responsible character of the Pan American Airways and the fact that it possesses postal concessions from the United States Government was dwelt upon. As a result the Foreign Office promised to endeavor to cause the other ministries concerned to reconsider the matter with a view to obtaining prompt permission for the operations contemplated by the Pan American Airways. It was observed in conclusion that if the effort to secure permission was successful the permit would of necessity follow the same lines as that accorded the New York, Rio and Buenos Aires Line. That is, the carrying of photographic apparatus and flying over the region of Fort-de-France would be prohibited and permission would be temporary, limited to two months with continued operation thereafter, dependent upon entering into negotiations for an agreement with the Aéropostale. At the Ministry’s solicitation, in order that it may be employed before the other pertinent authorities, I have again submitted a note asking a prompt and favorable decision in the instance of the Pan American Airways request.

I have [etc.]

Norman Armour