811.34553B/7–144: Telegram
The Secretary of State to the Ambassador in Portugal (Norweb)
1888. The Department is gratified by the progress on the Santa Maria Air Base.
One matter needs to be kept in mind. In previous operations of this kind Pan Air has not infrequently endeavored to put into the [Page 41] papers clauses which are for the benefit of Pan Air rather than for the general benefit of the United States. The Department’s policy is that any air rights obtained by United States officials or by any company acting on behalf of the United States must be available for disposition as United States policy shall direct, so that no one company or group of interests can become the exclusive beneficiary of any residual commercial rights which may form part of the transaction or which may eventually be acquired as a result of it. For this reason I hope you will watch the situation and report fully the proposed documentation.
For your information, there is a vigorous dispute in Congress as to whether Pan Air should be permitted to have a monopoly of United States overseas aviation, and it appears probable that a majority of both Houses are against the proposal. This group would likewise criticize our being parties to any set of arrangements which in effect would accomplish this end through a system of exclusive concessions or options on future rights. One such incident is presently under investigation by the Truman Committee.80
- Special Senate Committee to investigate the National Defense Program, Senator Harry S. Truman of Missouri, Chairman.↩