611.9194/12–2254
Memorandum of Conversation, by the Chief of the Aviation Policy Staff (Bolster)1
Subject:
- Developments concerning the US–India Air Transport Agreement.
Participants:
- Ambassador George Allen
- E—Mr. Samuel C. Waugh
- SOA—Mr. Lamar White
- TRC—Mr. J. P. Barringer
- AV—Mr. E. A. Bolster
- CAB—Mr. Harmar Denny, Acting Chairman
- CABM—Mr. Walter Peck
- PAA—Mr. Russell B. Adams
- TWA—Mr. Thomas T. Taylor
- TWA—Mr. J. Constantz
This conference was arranged by Mr. Waugh, after a discussion of developments on the Indian situation with Under Secretary Hoover, as a means of informing the carriers of the current developments and, if possible, to obtain their approval of the proposed course of action. Mr. Waugh opened the meeting with a brief statement concerning developments to date. Mr. Bolster reviewed for the carrier representatives benefit the details of “Approach 4” as contained in the Department’s instruction, A-124 dated November 10, 1954 and telegram 716, December 10.
[Page 1803]Mr. Waugh then reviewed the Embassy’s report on its efforts to persuade the Indian Government to adopt Approach 4 (New Delhi telegram 851, December 22). Upon conclusion of his statement, Mr. Waugh requested that Mr. Denny express the views of the Board. Mr. Denny read from the minutes of the Board meeting, which took place earlier in the day, which in substance stated that in view of the current delicate situation and the opinion of the Department of State that there was little or no chance of obtaining Indian acceptance of Approach 4 and continuance of the agreement unless the U.S. offered to make an immediate reduction in service in a capacity consultation. The Board agreed that the Embassy should suggest that the U.S. would be willing to engage in an immediate capacity consultation after the first of the year, in which consultation the U.S. would be willing to agree to a reduction of its service to two flights a week for each carrier.
Ambassador Allen expressed doubt that it would be possible to persuade the Indians to withdraw their notice of termination of the agreement, but was of the opinion that if any proposal would have an effect upon the Indian position, the suggestion previously mentioned by Mr. Waugh and Mr. Denny would have the best chance of success. He summarized his discussions with the Indian authorities prior to his departure from India early in December and gave an analysis of Indian attitude which indicated little Indian concern over the prospect of termination of the air transport agreement.
At Mr. Waugh’s request Mr. Taylor stated that in his opinion TWA would be willing to make the requested adjustment in service after consultation subject to a corresponding reduction on the part of Pan American.
Mr. Adams and Mr. Taylor both agreed their companies much preferred to retain the air transport agreement in force.
Mr. Taylor strongly objected to any understanding with the Indians involving acceptance of restrictions on Fifth Freedom traffic.
Mr. Adams questioned the necessity for reducing Pan American service at all in view of the offer made in the 1953 consultation to reduce TWA service to two flights a week without any reduction in Pan American flights. He felt that insufficient consideration had been given to the possibility of having Pan American make adjustments in its flight schedules to reduce the amount of service to Delhi and Calcutta by serving the points on alternate flights or some other means. Mr. Bolster pointed out that even though Approach 4 may be acceptable to the Indians they may also insist on U.S. carrier service to no more than one point in India, or to no more than one point on a single flight. Furthermore, a modification could be made in routes without compromising U.S. aviation principles. Mr. Adams objected on the ground that such a modification would require a substantial financial sacrifice on the part of Pan American. He declined to express any position for [Page 1804] Pan American on the course of action proposed. Ambassador Allen asked whether Mr. Adams would be willing to agree with a statement that in view of the precarious condition of U.S.–India air transport relations and the necessity for working out some arrangement if U.S. carrier services are to be continued the Government must take drastic action. Mr. Adams agreed.
- This memorandum was drafted on Jan. 5, 1955.↩