Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 1

911.5200/12–2054

Memorandum by the Assistant Secretary of State for Economic Affairs (Waugh) to the Under Secretary of State (Hoover) and the Deputy Under Secretary of State (Murphy)¹

confidential

[Washington,] December 27, 1954.

• Subject:
• Trans-Pacific Certificate Renewal Case

Discussion:

In a letter dated December 20, 1954² the Bureau of the Budget in accordance with the usual procedure requested the views of the Department on the Civil Aeronautics Board’s recommended decision in the Trans-Pacific Certificate Renewal Case (Docket 5031, et al) dated December 17, 1954. Subsequently, the Department was requested by a telephoned message from the Bureau of the Budget to expedite its comments on this case, sending them to the Bureau of the Budget not later than December 27. Informally the Department has learned that the reason for the expedited action is to enable a cabinet level meeting scheduled for December 30 to discuss this case. Up to the present time the Department of State has apparently not been invited to participate in this meeting.

It is important that the Department of State participate in the meeting to discuss the Trans-Pacific Case since it involves international civil air transport matters. Furthermore, the responsibility for negotiating with any foreign governments for additional traffic privileges which may be needed to implement the routes authorized rests with the Department. The meeting will afford an opportunity to clarify the Department’s interests and responsibilities.

The Board’s decision recommended a continuance of both Pan American and Northwest operations across the Pacific; the denial of TWA’s application for an extension of its certificate to permit a round-the-world service through connection with Northwest; and a denial of the Transocean Airlines’ application for a certificate to operate across the Pacific. The Department did not make previous comments with regard to the Transocean application. The Board’s proposed decision with regard to other matters is in line with the Department’s recommendations. There is attached a letter to the Bureau of the Budget (Tab A)³ expressing concurrence with the decision.

There is also attached a proposed memorandum to the Secretary (Tab B) briefly summarizing the situation with regard to this case in order that he may be informed in case the question is raised with him directly.

Recommendation:

It is recommended that: (1) Mr. Hoover phone Mr. Sherman Adams at the White House and advise him of the Department’s interest in, and desire to participate in, any meeting held to discuss this case,⁴ (2) Mr. Hoover sign the attached letter to the Bureau of the Budget (Tab A),⁵ (3) that Mr. Hoover sign the attached memorandum and transmit it to the Secretary (Tab B).

1. Drafted by H. Alberta Colclaser; concurred in by the Bureaus of Economic Affairs, European Affairs, Far Eastern Affairs, and Near Eastern, South Asian, and African Affairs, and by the Office of Transport and Communications Policy.
2. Not printed. (911.5200/12–2054)
3. No tabs were found with the source text.
4. Under Secretary Hoover called Governor Adams at the White House on the morning of Dec. 29, and in the Governor’s absence left the appropriate message. (911.5200/12–2954)
5. The reference letter was signed and sent under date of Dec. 28; see infra.