811.79641/12–145: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

10449. Regarding Satterthwaite’s telephone conversation with Walstrom November 30.34

[Page 239]

CAB informed representatives of American Overseas Airlines on evening November 30 that they had understood through Dept that Pan American now thinking of adopting $375 rate under certain conditions. CAB did not feel it could go further at this time, in which Dept concurs. American Overseas representatives expressed interest but did not commit themselves, although it is understood that they had previously considered $375 rate as acceptable.

As Dept has stated previously, CAB cannot approve or fix rates. However, if Panam files for $375 rate with request for waiver of 30–day period, CAB will consent.

CAB has previously stated that total number of schedules to UK will be divided equally. In other words, Panam’s two frequencies under 1937 arrangement will be included in the 50–50 division.

Byrnes
  1. In a memorandum of conversation, dated November 30, 1945. Assistant Chief of Aviation Division Joe D. Walstrom recorded that Mr. Satterthwaite had called from London to report that he understood from a talk with Harold M. Bixby, vice-president of the Pan American World Airways System, that Pan American was willing to accept the $375 trans-Atlantic rate. Pan American also proposed that it retain its two frequencies under the 1937 Agreement and that additional frequencies be divided equally between it and American Overseas Airlines. Pan American urged that these proposals be cleared with American Overseas and the Civil Aeronautics Board. (811.79641/11–3045)