711.9627/11–1646: Telegram
The Ambassador in the Philippines (McNutt) to the Secretary of State
[Received November 16—1:30 a.m.]
779. 1. Air agreement signed today by Quirino8 and McNutt at 10:30 a.m. Text follows air pouch.9
2. Coincident with signing the Embassy delivered following note:
“I have the honor to refer to your note of November 3, 1946 with reference to the interpretation of certain sections of the Bi-lateral Air Transport Agreement signed today between the United States of America and the Republic of the Philippines.
With reference to the last sentence of article V, careful note has been taken of that part of your communication which reads as follows: [‘]my government, therefore, understands that the Government of the United States will not refuse to recognize a Philippine certificate of competency or license issued to an American national unless it will have reason to believe that such certificate or license had been procured by fraud or concealment of a material fact such as the revocation of a United States pilot’s license previously issued to him or conviction on charges of serious violations of laws and regulations.[’]
I have the honor to state in this connection that the understanding expressed by Your Excellency is in accord with the interpretation placed by the Government of the United States of America on the article in question.
With reference to the last sentence of annex B which contains the route description for airlines of the Republic of the Philippines, I am authorized by my government to assure you that the language of the description of the route authorized for airlines of the Republic [Page 930] of the Philippines will not result in insistence by my government on any route which might prove operationally unfeasible. I am authorized to add that airlines of the Republic of the Philippines could, for instance, should they so desire, fly on the same route between Manila and San Francisco as that presently followed by aircraft operated by Pan American Airways.
Accept, Excellency, etc.[”]
3. This was in reply to Foreign Office note dated November 9 textually as follows:
“I have the honor to propose further clarification of the position of my government with respect to the meaning of certain provisions in the proposed Air Transport Agreement between the Government of the United States and the Republic of the Philippines. I refer to the (1) last sentence of article V and (2) last sentence of paragraph (b) of the annex.
Airlines of the Philippines are pursuing a vigorous policy of establishing routes and services and in this they have the full support of their government. Because of the strategic position of the Philippines in relation to international air traffic, this government looks forward to an era of great development and prosperity for airlines owned and operated by Filipinos. Unfortunately at the present time there is a shortage of trained and experienced pilots of Philippine nationality. While this deficiency is being overcome, it will probably be some time before qualified personnel of Philippine nationality will be available to man all airplanes operating on national and international routes under Philippine registry.
In view thereof, my government will sign the aforementioned agreement with the understanding that the last sentence of article V would not be interpreted or used to prevent the employment of pilots of American nationality, holders of Philippine licenses, from piloting airplanes of Philippine registry on the route described in the annex of the agreement. It is the understanding of my government that the reservation of the right to refuse to recognize certificates of competence and licenses granted to nationals of one of the contracting parties by another state is to prevent abuse by pilots, nationals of either contracting party, of the spirit of reciprocity and fair play which underlies the agreement and its annexes. My government, therefore, understands that the Government of the United States will not refuse to recognize a Philippine certificate of competency or license issued to an American national unless it will have reason to believe that such certificate or license had been procured by fraud or concealment of a material fact such as the revocation of a United States pilot’s license previously issued to him or conviction on charges of serious violations of laws and regulations.
In view of the spirit of reciprocity and the desire of both contracting parties to prevent discriminatory practices and assure equality of treatment as much as possible, which pervades the entire agreement, it is the understanding of my government that under the last sentence of paragraph (b) of the annex, any right to travel on any [Page 931] route granted to the Pan American World Airways or any other commercial airlines of the United States is also deemed granted to authorized commercial airlines of the Philippines.
It is the hope of my government that your esteemed government is of the same view, for which reason your confirmation thereof will be highly appreciated.
Accept, Excellency, etc.”
4. Embassy’s note based on Deptel 485, October 11, and 624, November 6.10
Please pass to War for info MID.