711.9327/8–246: Telegram

The Acting Secretary of State to the Ambassador in China ( Stuart )

578. Dept unable identify reference your 1240 Aug 2 to Deptel 302 July 29 re denunciation air transport agreement. Depcirtel July 25 instructing Missions to give appropriate notice this denunciation was followed by Depcirtel Aug 1 giving additional background info which Dept hopes will satisfy Dr. Liu Chieh.

Dept and CAB11 anxious conclude bilateral air transport agreement with China soonest possible. Boiling Powell of Depts Office of Transport and Communications Policy scheduled arrive Nanking via Manila about Aug 13 for purpose assisting Emb in such negotiations. He will travel same plane as representatives FLC12 and War Dept who are to arrange settlement surplus and Lend Lease matters.13 While latter negotiations will not necessarily be linked with air transport agreement, it is believed concurrent discussions both matters might serve useful purpose.

Powell bringing copy CAB’s recent Pacific route decision re proposed US airlines to serve China, as well as copies US bilateral agreements with UK, Belgium, Egypt, and Greece;14 also copy route annex to form part proposed agreement with China.

[Page 1231]

Since TWA15 and Northwest16 plan connection at Shanghai, description US route one in Annex carried by Powell should be revised so latter part would read “…17 Nanking and China to the Philippine Islands and beyond, as well as connecting at Shanghai with Route 3 described below.”

Upon Powell’s arrival you are requested address note to Chinese Govt stating US desire conclude bilateral air transport agreement at earliest opportunity, with following additional info. US Govt suggests so-called standard clauses formulated at Chicago Conference as basis for this agreement, such form having been used by US in concluding bilaterals with number of countries (examples are Ireland, Scandinavian countries, Spain, Portugal, Switzerland, Turkey and Czechoslovakia).18 However our bilateral agreement with Britain signed at Bermuda incorporated provisions additional to original Chicago form, some of which were to cover special situations existing between US and UK and which may not be pertinent to US-China agreement. Our bilaterals with France19 and Belgium follow along Bermuda lines; those with Egypt and Greece based on original Chicago form but with certain Bermuda principles and provisions added in Annex. Dept will be pleased consider inclusion pertinent additional provisions of Bermuda Agreement in formulating bilateral agreement with China. Copies of agreements carried by Powell with foregoing comments may be furnished Chinese Govt for study. (End of info to be included in note.)

Re second para your 1240 Aug 2 you should emphasize to Dr. Liu Chieh that bilateral agreements concluded by us offer most-favored-nation treatment only with respect such matters as those covered, for example, in article 3 of Egyptian agreement. We do not regard bilateral grant of air rights to one country as obligating us grant similar rights to another country.

Language corresponding to article 6 Egyptian agreement should be revised in Chinese agreement; Powell bringing new text.

Francis G. Jarvis of Depts Aviation Division has been assigned Civil Air Attaché China and expects arrive shortly after Sept 1.

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Telegraph progress discussions on air transport agreement. Dept requires week’s notice before conclusion so as obtain Full Power authorizing Ambassador to sign.

Acheson
  1. Civil Aeronautics Board.
  2. Foreign Liquidation Commissioner.
  3. See pp. 1033 ff.
  4. United Kingdom, February 11, 1946, T.I.A.S. No. 1507, or 60 Stat. (pt. 2) 1499; Belgium, April 5, 1946, T.I.A.S. No. 1515, or 60 Stat. (pt. 2) 1585; Egypt, June 15, 1946, T.I.A.S. No. 1727, or 61 Stat. (pt. 4) 3825; Greece, March 27, 1946, T.I.A.S. No. 1626, or 61 Stat. (pt. 3) 2937.
  5. Trans-World Airlines.
  6. Northwest Airlines.
  7. Omission indicated in the original telegram.
  8. Ireland, February 3, 1945, E. A. S. No. 460, or 59 Stat. (pt. 2) 1402; Denmark, December 16, 1944, E. A. S. No. 430, or 58 Stat. (pt. 2) 1458; Norway, October 6, 1945, E. A. S. No. 482, or 59 Stat. (pt. 2) 1658; Sweden, December 16, 1944, E. A. S. No. 431, or 58 Stat. (pt. 2) 1466; Spain, December 2, 1944, E. A. S. No. 432, or 58 Stat. (pt. 2) 1473; Portugal, December 6, 1945, E. A. S. No. 500, or 59 Stat, (pt. 2) 1846: Switzerland, August 3, 1945, T. LA. S. No. 1576, or 60 Stat. (pt. 2) 1935: Turkey, February 12, 1946. T. I. A. S. No. 1538, or 61 Stat. (pt. 3) 2285; and Czechoslovakia, January 3, 1946, T. I. A. S. No. 1560, or 60 Stat. (pt. 2) 1917.
  9. Signed March 27, 1946, T.I.A.S. No. 1679, or 61 Stat. (pt. 4) 3445.