611.2194/8–2852

Memorandum of Conversation, by Albert H. Gerberich of the Office of South American Affairs1

confidential

Subject:

  • Negotiations for a Bilateral Aviation Agreement with Colombia
  • Participants: Sr. Don Cipriano Restrepo-Jaramillo—Colombian Ambassador
  • Sr. Don Misael Pastrana—Minister-Counselor, Colombian Embassy
  • The Honorable Josh Lee—Member of the CAB
  • Mr. Hill—AV
  • Miss Hillyer—AV
  • Mr. BennettOSA
  • Mr. BernbaumOSA
  • Mr. NolanAR
  • Mr. GerberichOSA

The meeting was held for the purpose of presenting to the Colombian Ambassador a memorandum2 prepared by the CAB in accordance with the request of the Colombian Foreign Minister to describe the procedures followed by the CAB in making subsidy payments to US airlines. The request was made by the Foreign Minister during a visit to his office on July 16, 1952 by Mr. Birgfeld, Counselor of Embassy at Bogotá, and Mr. Bernbaum of ARA (Embassy, Bogotá tel. No. 44, July 16, 19523). It was motivated by the realization of the Foreign Minister that the Department and CAB would not agree to an agreement based on frequency or capacity restrictions; the probable fear that failure to reach an agreement would result in US denunciation of the Kellogg–Olaya Pact under which Avianca enjoys favorable operating privileges in the US; and the corresponding desire to have at hand sufficient evidence regarding the painless character of free competition to mollify the Colombian Congress in the event that a non-restrictive agreement were presented to it for approval.

The memorandum also included a summary of the various arguments previously adduced by the CAB to demonstrate that the Colombian Aviation line, Avianca, need not fear the results of free competition with American airlines.

Although previously informed by both the Foreign Minister and a Departmental officer of the purpose of the memorandum, the Ambassador’s reaction to it was characteristically critical as representing only a rehash of information already reported to his Government. Making a [Page 783] very good presentation of the Colombian case, he urged that the CAB reconsider his proposal for the informal application of the terms of the agreement for a trial period of one year. He was not, however, willing to consider Mr. Hill’s suggestion that the trial period be based on complete freedom for Braniff (the only US airline thus far certificated to serve Bogotá) to operate without any frequency or capacity restrictions.

The ensuing discussion again demonstrated the determination of the US to insist upon full facilities for free competition and that of the Colombian Government to press for restrictions on frequency and capacity. In summing up the problem, the Colombian Ambassador emphasized the probability of rejection by the Colombian Congress of any agreement considered to jeopardize the welfare of Avianca. While expressing his readiness to recommend acceptance of the United States position as involving over-all advantages to Colombia, he pleaded for sufficient concessions by the CAB to insure acceptance by the Colombian Congress. He then requested to be informed of the final United States position sometime before his departure for Bogotá at the end of September.

Senator Lee expressed his appreciation of the Ambassador’s viewpoint arid stated that, although he would be glad to bring the matter again to the attention of the CAB, he did not personally see any reason for believing that the previously unalterable decision of the five CAB board members not to permit frequency and capacity restrictions would be changed.4

  1. Codrafted by Mr. Bernbaum and Mr. Gerberich.
  2. No copy of the referenced memorandum was found in Department of State files.
  3. Not printed (611.2194/7–1652).
  4. On Sept. 12, 1952, Ambassador Restrepo-Jaramillo was informed at the Department of State that the CAB refused to consider any arrangement involving restrictions on frequency and capacity (memorandum of conversation, by Mr. Bernbaum, Sept. 12, 1952, 611.2194/9–1252).