American and Brazilian officials held frequent formal and informal consultations during 1950 regarding the operations of airlines of each country under their Agreement Relating to Air Transport Services, which was signed at Rio de Janeiro on September 6, 1946, and which entered into force on the same day. (Text in Department of State Treaties and Other International Acts Series (TIAS) No. 1900, and in 61 Stat. (pt. 2) 4121.) The discussions, which covered routes, stopovers, rates, and capacity and frequency of flights, resulted principally in curtailment of service on certain Brazilian routes of Pan American World Airways System and termination of service on a Brazilian route which had previously been allotted to Pan American Grace Airways, Inc., on a temporary basis.
Text of the understanding reached concerning PAA service forms part of an enclosure dated October 6, 1950, to despatch No. 695 from Rio de Janeiro, November 11, 1950. (911.5232/11–1050) The change which affected Panagra was an Amendment to the Air Agreement and was signed in Rio on December 30, 1950, and entered into force that day. (Text printed in 2 UST (pt. 1) 460.)
Partial summaries of the negotiations as they related to the interests of PAA are contained in the letters of September 26 and October 24, 1950, from Ambassador Johnson to Mr. Kidder. (911.5232/9–2650 and 911.5232/10–2450) Detailed information on United States-Brazilian air transport problems during 1950 may be found in files 611.3294, 911.5220, 911.5220 PAA, and 911.5232.