800.796/9–1544: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received 9:23 p.m.]
7619. The editorial quoted in the Embassy’s telegram number 7617 of September 1578 is considered to be highly significant both because of its liberal approach to the air and because it appears in the Daily Express, Lord Beaverbrook’s newspaper. It is understood that when [Page 541] Lord Beaverbrook returned from his recent trip to the United States, he reported that it was now certain that the United States would not follow a monopoly or chosen instrument position in international aviation. This was widely believed in any case, but as the Embassy has frequently reported, there has existed strong influence in and out of the Government in favor of an arrangement between a chosen instrument in the United States and a similar one in England for the division or at least major control of international flying. As long as a reasonable possibility existed that there might be a chosen instrument in the United States with which such an arrangement or gentleman’s agreement could be reached, it was not possible for those in favor of opening British international aviation to competition to have the Government openly support or admit their views. The publication of the President’s letter to Secretary Hull on cartels79 which is regarded here as very much including the air, and Secretary Hull’s letter to Senator Bailey on the Department’s position with respect to competition in United States international aviation, has greatly strengthened the hands of those opposed to the BOAC monopoly and a possible cartel type of arrangement between a United States and a British chosen instrument. We are informed that Lord Beaverbrook has again been actively but quietly encouraging the shippers, the railways and others to present more detailed plans for their proposed air services (which have been delayed by the inability of the various groups to get together). It is expected that soon after the reconvening of Parliament on September 26 civil aviation will again be debated, and it is rumored that this time the Government will definitely state that two or three separate British groups will be permitted to engage in international aviation, when they have landing rights, aircraft, crews, et cetera. There is some talk that BOAC will be dissolved but this is considered unlikely although important reorganizations in the company may take place.