The Ambassador in Brazil (Pawley) to the Secretary of State
[Received 11:58 p.m.]
1336. Reference Embassy’s telegram 995, May 28, 7 p.m. Brazilian counter-proposals for bilateral civil aviation agreement presented today at meeting at Air Ministry attended by Embassy representatives and Brazilian group headed by Brigadeiro Cunha Machado. Complete new draft proposed agreement had been prepared by Brazilians incorporating general provisions US draft plus additional articles, and enlarging annex to include much material from Bermuda agreement. Routes suggested for US carriers radically different from US proposals; Brazilian routes requested for first time specified below.
Impractical telegraph full text of Brazilian proposals or differences from US proposals, but salient features listed below:[Page 474]
1. Article 8 US proposals does not appear in Brazilian draft, but Brazilian article 13 provides that present agreement replaces any, privileges or concessions in existence at time of signature granted by either contracting party to an airline of the other country.
2. Section A of annex provides that traffic capacity must be in close relation with requirements.
3. Section C of annex rejects Fifth Freedom by stating that traffic destined to or coming from third countries will be permitted only when national airlines are not rendering same service.
4. Section E annex provides rates to be established by agreement between airlines on same route and submitted to both Governments for approval after reaching understanding through machinery of International Air Transportation Association.
5. Section H annex provides that disagreement between contracting parties on rates must be submitted to PICAO or successor organization, each government undertaking to use best efforts to adopt recommendations of that body.
6. Routes proposed for US airlines in annex divided into two sections; one route to Brazil and three routes across Brazil. Route to Brazil is same as No. A–4 in US proposals except Belo Horizonte eliminated.
Three routes across Brazil offered as follows:
First from US via intermediate points in the Caribbean and South America to Belém, Natal and Africa in both directions. (Occasionally in case of need to Europe when meteorological conditions of the North Atlantic require it.)
Second from US via intermediate points in the Caribbean and South America to Manaos, Goiania, Guaira and beyond (i.e., Asunción, or Montevideo, etc.)
Third from the US via intermediate points in the Caribbean and South America to Manaos, Goiania, São Paulo, Montevideo and Buenos Aires.
With reference to third route Cunha Machado stated no objection to inclusion Rio de Janeiro, but pointed out deviation from Goiania to Rio on route Montevideo-Buenos Aires. However, international traffic; could not be carried from Rio to Buenos Aires or return because of Section C annex referred to above since both Panair do Brasil and Cruzeiro do Sul and possibly other Brazilian lines plan to maintain this service.
It will be observed that Pan American’s coastal route (see A–2 US proposals) is eliminated from Brazilian proposals.
Route approved by CAB to São Paulo from West Coast (see A–6 US proposals) likewise eliminated.
Pan American cut-off in Barreiras likewise eliminated.
Corumba likewise eliminated affecting Panagra service.
Cunha Machado stressed advantages, direct interior route via Goiania, Cuiba and Guaira, but as Department is aware, these airports are not yet adequate for large airplanes and have not received CAA authorization.
7. Routes proposed for Brazilian airlines provide for three routes to US as follows: [Page 475]
First from Brazil via intermediate points in South America and the Caribbean including Puerto Rico to Miami, Washington and New York or to Washington and New York.
Second from Brazil via intermediate points in South America and the Caribbean including Puerto Rico to Miami and Chicago.
Third from Brazil via intermediate points in South America and the Caribbean including Puerto Rico to New Orleans.
No routes across US are requested.
Full text Brazilian draft proposals follows by air. Foregoing summary salient points will bring home to Department difficulties of pending negotiations as previously reported. Due to great importance of pending agreement suggest reconsideration be given Embassy’s recommendation in telegram 807, April 30, 8 p.m.,83 that high-ranking, competent official from Department or Commerce Department proceed Rio de Janeiro immediately with ample authority to negotiate rapidly thus obviating delays to be expected from frequent telegraphic interchange.
- Not printed.↩