Foreign Relations of the United States, 1955–1957, American Republics: Multilateral; Mexico; Caribbean, Volume VI

237. Memorandum for the Record, Prepared in the Office of Transport and Communications of the Department of State¹

Washington, October 3, 1956.

SUBJECT

• Summary of United States-Mexican Negotiations on Air Transport

Negotiations for an air transport agreement between the United States and Mexico were begun in December 1945. Despite frequent formal negotiations, some in Mexico and some in Washington, and continuing informal efforts by the United States Embassy in Mexico City to conclude such an agreement until the compromise which now offers hope of success, differences in principle between the two Governments prevented conclusion of an agreement. The Mexican principles were based upon protection of Mexican airlines, to be achieved through exclusive operating rights on certain key routes, or through division of traffic between Mexican and United States airlines serving the same routes. The United States, on the other hand, aspired to an agreement in which there would be reciprocal rights for the carriers of both countries to operate on all the principal routes without any artificial traffic restrictions or divisions of traffic.

Throughout the negotiations there have been pressures on the Department and the Civil Aeronautics Board from both governmental and non-governmental sources. Governmental sources have been mainly Senators and Representatives from the Southern States, the West and Northwest and, more recently, from the area which would be served by a through non-stop New York–Mexico City service. These Congressmen have been influenced to a great extent by airlines desiring to serve one of the following routes: New York–Mexico City; New Orleans–Mexico City; or Los Angeles–Mexico City. The Congressmen have also been influenced to a great extent by Chamber of Commerce activities in the traffic areas served by the three United States terminals just mentioned.

The airlines certificated by the Civil Aeronautics Board in its 1946 Latin America Route Decision have made frequent direct approaches to the Department and to the Civil Aeronautics Board for action to permit implementation of their routes. These airlines are American (New York–Mexico City); Eastern (New Orleans–Mexico City); and Western (Los Angeles–Mexico City). Eastern has been far the most vigorous in its campaign.

Within the last year or two Chambers of Commerce in the Northeastern part of the United States, the Southern area, and the West Coast and Northwestern part of the United States have written directly to the Department and the Civil Aeronautics Board, passed resolutions and urged Congressional support for action to provide United States airlines services to their respective territories.

The agreement which, it now appears, may finally be concluded differs from the standard form United States air transport agreement primarily in the following respects:

(1) It is to be achieved through an exchange of notes which establishes the routes to be served and the period of effectiveness of the agreement to which is attached an appendix containing the principles normally contained in the standard United States form air transport agreement, rather than through an agreement containing the principles in the body and the routes in an attached route schedule.

(2) The exchange of notes provides that if either party gives notice, prior to November 15, 1957 of dissatisfaction with the agreement, said agreement shall terminate effective December 31, 1957 by mutual consent, unless the parties agree to its extension, rather than the indefinite duration of a standard agreement, with provision for termination.

(3) An independent and informal letter from the United States Ambassador to the Mexican Minister for Foreign Relations will provide that until December 31, 1957 the United States airline Pan American Airways will continue its present practice of stopping at Guatemala City on its route Houston–Brownsville–Tampico–Mexico City–Tapachula and beyond to Guatemala and beyond.

(4) In a conversation on September 27, 1956 the Under Secretary of State told the Mexican Minister of Finance that, should the agreement not enter into force within a reasonably short time or if it were terminated at the end of one year, the United States would have no alternative but to take the steps necessary to terminate all services by Mexican airlines into the United States.

While the form of agreement which appears about to be concluded is not completely in accordance with the standard form adopted by the United States, and while the United States had hoped for an agreement of indefinite duration, nevertheless the principles embodied in the agreement are those normally included in air transport agreements negotiated by the United States and neither the form nor the short period of duration are believed to be inconsistent with either the objectives of the United States or its previous positions. It may be noted that since the principles and the route exchanges are consistent with the objectives of the United States, the change in form is not of a nature to cause difficulties. The one year duration of the agreement is disappointing but it should be noted that in the standard form agreement negotiated by the United States there is provision for termination by either party, such termination to become effective at the expiration of one year after notice of denunciation.

The statement that Pan American Airways will stop at Guatemala on its flights South of Mexico City on one route provides for a continuation for a limited time of a practice already adopted by the airline.

1. Source: Department of State, Central Files, 611.1294/10–356. Confidential. Transmitted to Under Secretary Hoover under cover of a memorandum dated October 4, from Acting Assistant Secretary Rubottom. Rubottom’s memorandum notes that this memorandum was prepared in the Aviation Division of TRC and was concurred in by ARA. Hoover initialed his approval on November 19.