Office of the Historian

800.796/656a

The Assistant Secretary of State (Berle) to the Canadian Minister Counselor (Pearson)

Washington, March 24, 1944.

Dear Mike: Enclosed herewith is a summary of the views of the technical group of this Government regarding post-war civil air transport.

Sincerely yours,

A. A. Berle, Jr.
[Enclosure]

Summary of Objectives Favored by the United States of America With Respect to Post-War Civil Air Transport

i. air navigation and air transport

1. Eight of Transit and Non-Traffic Stop

Civil aircraft of one nation should be free to fly in transit across the territory of another nation, and to land for non-traffic reasons. Freedom of air transit should include the right of non-stop passage for scheduled airline services. Such rights would be subject to reasonable regulations, including those essential to national security, and would not affect the sovereignty of any nation.

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2. Right of Commercial Air Entry

The establishment and operation of air carrier services including the right of commercial entry for transportation of passengers and property between points in two or more nations should be arranged by inter-governmental agreement, except where a government may permit its carriers to negotiate directly with a foreign government.

Each nation obtaining rights of commercial air entry from another nation should be free to assign them to its air carriers without obtaining prior approval of the other nation. However, one nation obtaining rights of commercial air entry in another nation should assign them only to a company or companies which are and continue to be substantially owned and fully controlled by nationals of either or both of the two countries.

Specific points of entry and routes to be operated in connection with the rights of commercial air entry should be established by arrangements between the civil aeronautical authorities of the countries concerned.

3. Non-exclusivity of International Operating Rights

Each nation should agree not to grant exclusive commercial operating rights to air carriers of any single nation, or to seek such rights.

4. Application of Cabotage to Air Traffic

Each country reserves the right to limit the carriage of commercial air traffic between two points both of which are under its jurisdiction to aircraft of its own nationality.

5. Control of Rates and Competitive Practices

There should be an international arrangement under which aeronautical authorities of the countries concerned should consult with each other for the purpose of reaching mutual understandings with respect to problems or controversies arising in connection with rates and other competitive practices. For the time being, however, each country should preserve freedom of action.

Under the above procedure the countries concerned would also consult with each other regarding the frequency of operation over particular routes, with a view to avoiding wasteful competition. However, in principle every carrier authorized to serve a particular route should be permitted to operate as many schedules as may be justified to take care of existing traffic at economically sound tariff charges. If it is deemed necessary to limit frequencies, due consideration should also be given to the proportionate share of traffic originated by nationals of each country.

6. Curtailment of Subsidies and Exchange of Subsidy Data

For the purpose of making international aviation as self-supporting as possible, there should be a frank exchange of information between [Page 424] nations, on the basis of uniform reporting, as to the amounts of subsidies and other assistance extended by the respective governments to their air carriers. The exchange of this information should be followed, wherever possible, by adjustment or regulation of rates, services, and competitive practices in an effort to develop efficient and non-subsidized operations. At the same time, it should be recognized that there will be certain routes where, for reasons of national policy, nations might be justified in subsidizing limited services.

7. Uniform Operating and Safety Standards

Steps should be taken by all nations to establish minimum and adequate standards for aircraft airworthiness, operation, and safety equipment. Air traffic rules, air traffic control procedures, and similar operating and safety regulations should be as uniform as possible, but each nation should be permitted to reserve the privilege of prescribing, on a non-discriminatory basis, special operating rules and procedures of local effect to be observed in the interest of safety by aircraft engaged in air transport operations in its territory.

8. Standardization or Coordination of Air Navigation Aids and Communications Facilities

Air navigation and communications procedures (applicable to both air and ground) should be standardized or coordinated as much as possible; this would not necessarily require complete standardization of the equipment used. This whole subject would be suitable for study and recommendation by any appropriate international body, but in the meantime the various international technical groups which have been discussing these matters should continue with their work in this field.

ii. airports and facilities

1. Designation of Commercial Airports of Entry

Each country should designate such commercial airports of entry as may be necessary for the effective and efficient operation of international air services by such other countries as may have been granted rights of commercial entry or transit.

2. Use of Airports and Facilities on a Non-discriminatory Basis

Each country should agree that the use of public airports, accessory facilities and technical assistance such as navigational aids, weather reporting and telecommunications are to be made available to civil aircraft of another country on the basis of national and most-favored-nation treatment.

Commercial aircraft of another country which have been granted rights of commercial air entry or transit should have equality of [Page 425] opportunity to obtain or provide necessary facilities for fueling, repair and maintenance.

3. Airports and Facilities in Isolated Areas

The interested countries should endeavor to conclude arrangements for the development and maintenance of necessary landing areas and facilities in areas whose governments are unwilling or unable to perform these functions.

iii. international collaboration

1. Establishment of an International Civil Aviation Commission and Definition of Its Functions

There should be established an International Aviation Commission. The composition of this body, and the manner in which the various countries should be represented thereon, could be determined by an international conference or by an interim study committee. At the beginning, at least, the powers of this commission might be limited to the following:

(a)
The study of procedures, and practices relating to safety regulations, operating methods, airline accounting, dissemination of meteorological information, customs procedure, standardization of communications equipment and facilities and air navigation aids, use and availability of airports, etc.
(b)
To collect complete information and make studies with respect to the operating statistics of all international air carriers, subsidies paid directly or indirectly by governments to air carriers, rates charged by carriers, competitive practices, contracts and agreements entered into between carriers and between carriers and governments, international regulations with respect to licensing of aircraft and aircraft operators, and in general all information of value or of interest to the various governments concerned.

The results of the above-mentioned studies and information collected should be made freely and completely available to the governments of all countries which are members of the International body. The following additional powers might be delegated to this Commission if the consensus of opinion among the interested nations is in favor thereof:

(a)
To recommend uniform simplified regulations where uniformity is practicable and unilateral action in other cases to correct abuses or unsatisfactory conditions which have been disclosed to the Commission in the exercise of its functions as proposed above.
(b)
To consider and decide questions affecting two or more nations when certified to the Commission by the parties concerned.

It is suggested that no further major powers be delegated to the Commission until after study and agreement by the nations primarily concerned.