800.796/8–3144

The Department of State to the British Embassy

Memorandum

The British proposal for an understanding between the United States and British Governments relating to the acquisition of air transport rights on a non-exclusive basis, received in the Department of State on August 31, 1944, is acceptable subject to certain proposed amendments.

With reference to paragraph 2(b) the Government of the United States feels that it could not enter into a commitment to prevent United States air transport undertakings from concluding any agreements with foreign governments. However, it is fully disposed to adopt all practical means to prevent United States air transport companies from concluding operating agreements with foreign governments which would preclude such governments from granting rights to the United Kingdom.

As to paragraph 2(c) it is thought that the definition of an air transport undertaking should include not only a company already engaged in air transport, but one which may be seeking to engage in such transport.

With regard to paragraph 2(d) it is the view of the United States Government that there should be a more definite provision for possible termination of the understanding, and it is thought that the understanding should remain in force until the Government of the United States and the British Government become bound by a future international agreement relating to the operation of international air transport services, or until the understanding is terminated on reasonable notice given by either Government to the other Government.

In line with the foregoing suggestions there is attached a draft of a suggested form of exchange of notes for giving effect to the proposed understanding.

[Page 165]
[Enclosure 1]

Proposed Note From the Secretary of State to the British Ambassador

Excellency: I have the honor to refer to negotiations which have taken place between the Government of the United States of America and His Majesty’s Government in the United Kingdom for the reaching of a reciprocal agreement concerning the acquisition of air transport operating rights on a non-exclusive basis.

It is understood that it has been agreed in the course of these negotiations, now concluded, that so far as concerns the obligations to be assumed by the Government of the United States of America this agreement shall be as follows:

Article 1

(a)
The Government of the United States of America undertakes that, except after consultation with His Majesty’s Government in the United Kingdom, it will not conclude any agreement with the government of any foreign country which would preclude the government of that country from granting flying rights to, in, and over its territory, to United Kingdom air transport undertakings.
(b)
The Government of the United States of America undertakes that it will also by all practical means prevent United States air transport undertakings from concluding any such agreement with the government of any foreign country, except after consultation between the Government of the United States of America and the Government of the United Kingdom.

Article 2

For the purposes of this understanding the expression “United States air transport undertaking” means any company engaged wholly or partly in air transport, or seeking to engage in such transport, which is incorporated in the United States of America or in any territory or possession within its jurisdiction.

Article 3

The present understanding will remain in force until the Government of the United States of America and His Majesty’s Government in the United Kingdom become bound by a future international agreement relating to the operation of international air transport services, or until the present understanding is terminated on sixty days’ notice given by either Government to the other Government.

I shall be glad to have you inform me whether it is understood by His Majesty’s Government in the United Kingdom that the terms of the reciprocal agreement so far as they constitute the obligations to be assumed by the Government of the United States of America are as above set forth. If so, it is suggested that your reply setting forth the corresponding obligations to be assumed by His Majesty’s Government constitute the reciprocal agreement to become effective [Page 166] on the date of your reply. If His Majesty’s Government concurs in this suggestion the Government of the United States of America will regard the reciprocal agreement as becoming effective on that date.

Accept [etc.]

[Enclosure 2]

Proposed Note From the British Ambassador to the Secretary of State

Sir: I have the honor to acknowledge the receipt of your note of . . . . . . . in regard to the reaching of a reciprocal agreement between His Majesty’s Government in the United Kingdom and the Government of the United States of America, concerning the acquisition of air transport operating rights on a non-exclusive basis.

In your note of . . . . . . . you have set forth your understanding of the obligations to be assumed by the Government of the United States of America in the carrying out of the terms of the reciprocal agreement which has been the subject of negotiations between the two Governments, now concluded.

I am instructed by my Government to state that the corresponding obligations to be assumed by His Majesty’s Government under the reciprocal agreement are as set forth below:

Article 1

(a)
His Majesty’s Government in the United Kingdom undertake that, except after consultation with the Government of the United States of America, they will not conclude any agreement with the government of any foreign country which would preclude the government of that country from granting flying rights to, in, and over its territory, to United States air transport undertakings.
(b)
His Majesty’s Government in the United Kingdom undertake that they will also by all practical means prevent United Kingdom air transport undertakings from concluding any such agreement with the government of any foreign country except after consultation between the Government of the United Kingdom and the Government of the United States of America.

Article 2

For the purposes of this understanding, the expression “United Kingdom air transport undertaking” means any company engaged wholly or partly in air transport, or seeking to engage in such transport, which is incorporated in the United Kingdom or in any British colony, overseas territory, protectorate, protected state or mandated territory in respect of which the mandate is exercised by the Government of the United Kingdom.

Article 3

The present understanding will remain in force until His Majesty’s Government in the United Kingdom and the Government of the [Page 167] United States of America become bound by a future international agreement relating to the operation of international air transport services, or until the present understanding is terminated on sixty days’ notice given by either Government to the other Government.

I am further instructed to inform you that my Government concur in your suggestion that the reciprocal agreement become effective on the date of this reply, and will accordingly regard it as becoming effective on this date.

I have [etc.]

[Subsequent correspondence on this subject dealt specifically with individual Near Eastern countries. See section entitled “Representations to the United Kingdom and Iran regarding American post-war civil air rights in Iran, especially at Abadan Island,” volume V, pages 486 ff.; also, section entitled “Representations to Egypt and the United Kingdom regarding American post-war civil air rights in Egypt,” ibid., pages 56 ff.]