711.4727/61
The Consul General at Sydney (Moffat) to the Secretary of State
[Received February 18.]
Sir: 1. I have the honor to transmit herewith text of a letter dated December 30, 1936,39 from Captain E. C. Johnston, Controller-General of Civil Aviation, in reply to two letters I had addressed him some months previously, based on the Department’s instructions of July 24 and August 5, 1936.40
2. Captain Johnston’s letter really deals with two separate subjects. The first deals with the importation of American aircraft into Australia. His letter, which accepts the Department’s point of view that a period of sixty days notice of contemplated alterations and additions to the conditions in force is reasonable, would seem to complete the understanding between the two Governments,—negotiations toward which began nearly a year ago with the Australian Government’s note of December 16, 1935. With reference to the last paragraph of the Department’s instruction of July 24 indicating that the American Government would prefer to have the understanding reached between the two Governments crystallized in the form of an exchange of notes, I feel quite strongly that it would be a mistake for us to make such a suggestion at the present time. Although still entirely informal, the system evolved is actually working and a greater number of American planes have entered Australia during the calendar year than I had believed possible. This result has been achieved despite the declared policy of the Government to divert trade from America to Great Britain and other “good customers” of Australia, [Page 782] and is due in large measure to the conviction of the Australian civil aviation authorities that American aircraft is best suited for Australian needs. Should we now suggest a formal exchange of notes, the whole subject would come up for review by the Cabinet and it is not impossible that instructions might be given civil aviation authorities to slow down on the purchase of American planes. In the circumstances I feel strongly that the path of wisdom is to leave a satisfactory situation alone and not risk a possible modification by attempting to cross the “t’s” and dot the “i’s”.
3. The second subject discussed in Captain Johnston’s letter deals with the importation into Australia of American aircraft engines, parts and materials. Here, too, any difficulties which may have existed with regard to the importation of American aircraft engines seem to have been disposed of.
With regard to parts imported for use of aircraft other than those imported from the United States, Captain Johnston has certain further observations to offer. The same holds true with regard to the importation of instruments and materials. Captain Johnston would be glad in due course to receive the comments of the American authorities on his suggestions with regard to these secondary points still at issue.
Respectfully yours,