ACTIVITIES OF AIR AMERICA AND CHINA AIR LINES IN SOUTHEAST ASIA

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 03143693
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 31
• Document Creation Date: July 13, 2023
• Document Release Date: November 15, 2022
• Case Number: F-2019-00307
• Publication Date: June 20, 1966

Approved for Release: 2022/10/26 C03143693
OGC 66-1359
20 June 1966
MEMORANDUM FOR THE RECORD
SUBJECT: Activities of Air America and China Air Lines in
Southeast Asia
1. Mr. George Denney of State informed me that the
Secretary of State plans to have Under Secretary Ball reply
to Senator Fulbright, saying only that he knows the Secretary
would be glad to be in touch with the Senator on this matter
when he returns about 10 July 1966. When the Secretary
returns, he will then focus on this problem; his basic feeling
is that he does not want to be forthcoming.
2. Meanwhile, I will recommend to Mr. Helms that
we go ahead and talk to Mr. Rostow in the White House and
see if Mr. Helms wants me or someone else to take that
mission.
eo.ce
LAWRENCE R. HOUSTON
General Counsel
OGC:LRH:jeb
cc: DDS
S013.
FE
OGC chrono
i%ubject HBILKA
(b)(3)
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20 June 1966
MEMORANDUM FOR:
SUBJECT:
Deputy Director of Central Intelligence
Activities of Air America and China Air Lines
in Southeast Asia
I. This memorandum contains a recommendation in para-
graph 4 for approval by the Deputy Director of Central Intelligence.
2. I talked to Mr. George C. Denney, Jr., Deputy Director,
Bureau of Intelligence and Research, Department of State, about
Senator Fulbright's letter inquiring about Air America. I suggested
that we could prepare an accurate response to the Senator's letter
which would be complete except for aA 's relationship with Air
America, and that we could then carry the letter to Senator Fulbright
and orally discuss this classified aspect. Mr. Denney felt that that
was a possibility but was not sure that the Secretary would be willing
to send a letter which could be considered misleading. His suggestion
was that the Secretary sign an interim letter saying that he would be
glad to discuss the Senator's questions with him and invite him to
lunch for that purpose. I said I thought this would be all right with
us, but Mr. Denney then said he was concerned that this might put
the Secretary in the position of providing the Senator with informa-
tion which the Director had said he would deny to the Senator's
Committee. I said we had traditionally made a difference between
responding to an individtal senator's request and briefing com-
mittees, and Mr. Denney agreed that this was a familiar practice.
I said we might overcome this by arranging that, if the Senator
agreed to a meeting luncheon or otherwise, an Agency representa-
tive could be there who would brief on the classified aspects.
Mr. Denney thought this might be a good solution.
3. We agreed that at this time I would prepare a briefing
paper for the Secretary on the company and that Mr. Denney would
prepare the interim response to Senator Fulbright. and that we
would exchange these papers Monday morning, 20 June, for further
consie,..ration. Attached is my proposed briefing memorandum for
the Secietary and also a draft letter which could be used if my
original suggestion were adopted.
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4. I recommend that I discuss this material and the
proposed response to Senator Fulbright with the Department
of State.
LAWRENCE R. HOUSTON
General Counsel
Attachments
The recommendation in
paragraph 4 is approved
Deputy Director of Central Intelligence Date
Distribution:
0-General Counsel
I-DDCI
1-ER
1-ADDS
1-DDS/HB
1-FE
1-SOD
l-OGC/LC
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BRIEFING NOTE
(
SUBJECT:
REFERENCE:
Activities of Air America and China Airlines
In Southeast Asia
14 June 66 Ltr fr Senator Fulbright to Secretary
of State
1. Senator Fulbright's letter asks for information as to
precisely what Air America's duties are in Southeast Asia and
whether it is used for paramilitary missions in Laos. He also
asks whether China Airlines is in any way involved in the American
war effort in this region or now has any connection with the Central
Intelligence Agency.
2. Air America is one of four companies which together
carry out extensive aviation services in the Far East. They are
owned and controlled by CIA to maintain a national aviation instru-
ment responsive to U. S. requirements in the Far East. The
Pacific Corporation is a Delaware company which is a holding
company for the others involved, and 100 per cent of the Pacific
Corporation's stock is owned by CIA through private individuals
as nominees. Air America. whose stock is 100 per cent owned
by the Pacific Corporation, is a Delaware corporation authorized
to engage in contract and charter airlift by the United States Civil
Aeronautics Board. Air America in turn owns almost 100 per cent
of the stock of Air Asia, a company organized in Nationalist China
under its foreign investment law and also authorized to engage in
contract and charter airlift by the Chinese and to maintain a large
maintenance base at Tainan. The Pacific Corporation owns 40
per cent of the stock of, and effectively controls, Civil Air Transport
Company. Limited, whose sole activity is the operation of the Chinese
flag international scheduled airline in the Far East and has no activities
bearing on Senator Fulbright's question.
3. Air America and Air Asia act as a joint venture, with
Air Asia supplying maintenance and much of the services to Air
America under contract. In Southeast Asia the great majority of
the airlift supplied by these companies is under contract between
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Air America and AID. There are minor contracts with the Depart-
ment of Defense and the Thailand border police patrol which have
no relationship to the Senator's inquiry. The main Air America
operation is carrying supplies and people into Laos under the AID
contracts* but about 40 per cent of this effort is in support of CIA
under the cover of AID contracts. Thus, in the company year ending
I March 1965 the cost of airlift to AID was about $5,800.000 and to
CIA about $4, 300,000. The AID portion is in support of normal AID
programs in the area. The CIA portion is primarily in support of
the Moo tribesmen in their resistance to the Pathet Lao and the North
Vietnamese. The great built of this is foodstuffs and other normal
supplies flown by Air America from bases in Thailand and either
landed or air dropped in Laos. ALActatain amount of arms and
ammunition are flown periodicallylisAkii4.4force planes piloted by
Air America pilots to locations in Laos in support of the Meos and
occasionally trail watch teams on the eastern border. In Laos light
planes make further distribution of some of these supplies, and we
have to move AID, CIA, and diplomatic personnel as needed. Similar
services are performed in the same manner by Continental Air
Services, Inc.. a subsidiary of Continental Airlines. This is a
straight commercial activity over which CIA has no control other
than by contract through AID. All of these services are performed under
the direction of the Ambassador and the U. S. Mission in Vientiane
and are coordinated between CIA. State. Defense. and AID in
Washington. In Thailand Air America has contracts primarily
for the movement of U. S. personnel but also as noted above to
service the border police patrol. In South Vietnam Air America
has AID contracts to service botla-C/Aposed AID programs,
rt. Itryc4--- wit� ,
4. The rationale for maintaining Air America is its responsive-
ness to national requirements; the fact that it can be caused to take
commercial risks or losses that a private company would not accept;
its unique ability to perform complex aviation maintenance under
Southeast Asian conditions; its area knowledge and experience; and
the security of its personnel and their willingness to undertake flights
that are extrahazardous, both from the nature of the terrain and the
airstrips involved and the frequent ground fire experienced, particu-
larly in Laos. Companies like Continental Air Services, Inc. can
perform a large amount of this on a commercial basis but cannot be
counted on in an emergency to the same extent we can depend on Air
America. Insofar as possible. however, Air America operates on
a normal commercial basis and no subsidy as such is required for
its support.
5. China Airlines is a company organized in Nationalist
China by Chinese retired Air Force officers. The company is
2
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completely independent of CIA and has no CIA participation or control.
However, it does operate in South Vietnam, particularly performing
domestic airlift in conjunction with Air Vietnam but also some contract
work in support of the CIA Station. It also has minor commercial
operations in Laos with which CIA has no connection. It addition,
It has performed some maintenance on planes which have served to
support CIA activities. China Airlines has ambitions to get into
the international scheduled airline business, and it was for this
purpose that it obtained the loan from the Export-Import Bank. It
is favorably regarded by the Nationalist Chinese government and
may at some time take over the scheduled business of Civil Air
Transport Company, Limited as CIA would like to be relieved of
the task of performing this commercial service.
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A
The Honorable J. W. Fulbright
Chairman
Committee on Foreign Relations
United States Senate
Washington, D. C.
Dear Senator Fulbright:
In your letter of June 14. 1966 you inquired about the
operations of Air America and China Air Lines in Southeast Asia.
Air America is a Delaware corporation authorized by the United
States Civil Aeronautics Board to perform charter and contract
airlift and does perform such services under contract to the
United States Government in support of Government organizations
in Laos, Thailand and Vietnam. The Government's requirements
are similarly served in that area by Continental Air Services, Inc..
a subsidiary of Continental Airlines.
In Laos these contract flying services are managed and
conducted with the full knowledge and approval of the United States
Ambassador to Laos.
China Air Lines, an authorized air carrier of the Chinese
Nationalist Government, does perform contract flying and maid enance
services in Southeast Asia for both the United States and Vietnam
Governments.
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If you would like to go further into the details of the
activities of these companies. I would be very glad to meet
with you at your convenience.
Sincerely.
Secretary of State
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SENDER WILL CHECK CLASSIFICATION TOP AND BOTTOM
� UNCLASSIFIED CONFIDENTIAL
SECRET
CENTRAL INTELLIGENCE AGENCY
OFF:CIAL ROUTZNG SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks:
Senator Fulbright wrote Secretary
Rusk asking about Air America and China
Air Lines. Rather than making a detailed
written response, State plans an interim
reply, which in effect asks the Senator to
come and talk to the Secretary. If he agrees,
the Secretary and someone from the Agency
will discuss aviation activities in Southeast
Asia with the Senator. State wants a briefing
paper, and I have prepared the attached.
Obviously, a great more detail could be put
in, but unless I have made any inaccurate
statements or conveyed any inaccurate (over)
FOLD HERE TO RETURN TO SENDER
1 FROM: NAME. ADDRESS AND PHONE NO.
DATE
General Counsel
6/20/66
i , UNCLASSIFIED 1 CONFIDENTIAL
SECRET
FORM NO. 2-61 037 Use previous editions
(40)
U.S. GOVERNMENT PRINTING OFFICE : 1961 0-587282
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impressions, I would like this to stand. Please
phone any comments to my office by 9:30 a. m.
LRHouston
Copies in
Dr aft to:
DDS
SOT)
FE-
(b)(3)
IS
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20 June 1966
MEMORANDUM FOR: Deputy Director of Central Intelligence
SUBJECT: Activities of Air America and China Air Lines
in Southeast Asia
1. This memorandum contains a recommendation in para-
graph 4 for approval by the Deputy Director of Central Intelligence.
2. I talked to Mr. George C. Denney, Jr.. Deputy Director,
Bureau of Intelligence and Research. Department of State, about
Senator Fulbright's letter inquiring about Air America. I suggested
that we could prepare an accurate response to the Senator's letter
which would be complete except for CIA's relationship with Air
America, and that we could then carry the letter to Senator Fulbright
and orally discuss this classified aspect. Mr. Denney felt that that
was a possibility but was net sure that the Secretary would be willing
to send a letter which could be considered misleading. His suggestion
was that the Secretary sign an interim letter saying that he would be
glad to discuss the Senator's questions with him and invite him to
lunch for that purpose. I said I thought this would be all right with
us, but Mr. Denney then said he was concerned that this might put
the Secretary in the position of providing the Senator with informa-
tion which the Director had said he would deny to the Senator's
Committee. I said we had traditionally made a difference between
responding to an individual senator's request and briefing camm
mittees, and Mr. Denney agreed that this was a familiar practice.
I said we might overcome this by arranging that, if the Senator
agreed to a meeting luncheon or otherwise, an Agency representa-
tive could be there who would brief on the classified aspects.
Mr. Denney thought this might be a geed solution.
3. We agreed that at this time I would prepare a briefing
paper for the Secretary on the company and that Mr. Denney would
prepare the interim response to Senator Fulbright, and that we
would exchange these papers Monday morning, 20 June, for further
consideration. Attached is my proposed briefing memorandum for
the Secretary and also a draft letter which could be used if my
original suggestion were adopted.
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4. I recommend that I discuss this material and the
proposed response to Senator Fulbright with the Department
of State.
LAWRENCE R. HOUSTON
General Counsel
Attachments
The recommendation in
paragraph 4 is approved
Deputy Director of Central Intelligence Date
Distribution:
0-General Counsel
1-DDCI
1-ER
1-ADDS
1-DDS/HB
1-FE
1-SOD
1.0GC/LC
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A
The Honorable J. W. Fulbright
Chairman
Committee on Foreign Relations
United States Senate
Washington, D. C.
Dear Senator Fulbright:
In your letter of June 14, 1966 you inquired about the
operations of Air America and China Air Lines in Southeast Asia.
Air America is a Delaware corporation authorized by the United
States Civil Aeronautics Board to perform charter and contract
airlift and does perform such services under contract to the
United States Government in support of Government organizations
in Laos, Thailand. and Vietnam. The Government's requirements
are similarly served in that area by Continental Air Services, Inc.,
a subsidiary of Continental Airlines.
In Laos these contract flying services are managed and
conducted with the full knowledge and approval of the United States
Ambassador to Laos.
China Air Lines, an authorized air carrier of the Chinese
Nationalist Government, does perform contract flying and maid enance
services in Southeast Asia for both the United States and Vietnam
Governments.
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If you would like to go further into the details of the
activities of these companies I would be very glad to meet
with you at your convenience.
Sincerely.
Secretary of State
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DRAFT
18 June 1966
Dear Senator Fulbright;
Thank you for your letter of 14 June 1966 concerning Air
America and China Airlines in Southeast Asia.
Air America, a U. S. incorporated contract air carrier,
the same as Continental Airlines, Inc., does perform air
contract services for U. S. Government organizations in
Laos, Thailand, and Vietnam.
In Laos, these contract flying services are arranged and
conducted with the full knowledge and approval of the United
States Ambassador to Laos.
China Airlines, an authorized air carrier of the Chine
rRAvtg ettligo
Nationalist Government, does perform contract flyingiservices
in Southeast Asia for both the United States and Vietnamese
Governments.
e kr,
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DEPARTMENT OF STATE
BunAu ( IN7t:L.LIM:NCE: ANI.) RU,EAIICH
CONFIDENTIA1 �
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June.17, 1966
rorw.kra 1A:2-(:w1th 4 copy of a letter fro:
1:.4tor Flabrigt,t to the SecrottLry. I would appreci-
ate your cal1.thg Lo about thia aci.tetima Sature.ay
zoraiag.
...QONFIDE\TIAL
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SC-.aifeb Zfatez evccde
commrrrec O T'OREiGN RCLATIONG
Juno 14, 1966
The -Honorable .Dean nue%
.Secretary of State
WashinL;ton, D. C.
Dear Secretary:
,-4,;(,y In New York Times of P:onday, June 13,
in w'r.lch Harriso==7Trope7ted from Laos, left a
ilication that it is corJ=nly accepted that Air
is subsidied by the Central Intellic;ence Aey
acv). that much of its woa,k is performinc; CIA missions. I
have head first-hand reports from others to the same
effect.
I wonder whether you could tell no precisely what
Air Amcl'tcals tluties are not only in LO3 but in
Thailand and other countries in Southeast Asia in which
It orates. I would also be interested in knowinEL
whether it is true that Air America is used for some
paPa-ilitary missions in LE-405 that'cannot ho performed
ilitry alrerb,ft b&,:cuse the use of such aircraft
wola vil;,LtL(_,n 01: thc: 1962 Cioni,\nA AO(loPk
I havo also noticed tht.the 1.1:7,:poat-Import Bank has
rcentIy civo a loan of over 0 million to China Air
linos, now operatInL; in Southeast Asia. Could you tell
e whetl.:or this airline is involved in any way in the
Amerion war effort in this ro&':;Ion or now has any con-
nection with the CIA?
, t-a-c:"1 c21-fle
d LA-
%/' Sincerely -yours,
Enclosure
"7:
Chairman
4
A.
9630
4.1V,Wii\;
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I RH talked w/Mr. Denney, 182 2132,
as Ambassador Koren's last day was
7/8. He is leaving for Saigon.
LRH suggested to Mr. Denney that it
might be good timing to delay this until
after 14 July - date Fulbright plans to put
in McCarthy resblution.
MEMORANDUM FOR: Mr. George C. Denney, Jr.
Deputy Director
Bureau of Intelligence and
Research
Department of State
Attached is a briefing note that
Ambassador Koren can use to familiarize
himself with the problem. I will be glad to
go with him to talk to Mr. Rostow.
LAWRENCE R. HOUSTON
General Counsel
CIA
21 June 1966
(DATE)
FORM NO.
I 0 I REPLACES FORM 10.101
1 AUG 54 WHICH MAY BE USED.
(47)
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20 June 1966
MEMORANDUM FOR: Deputy Director of Central Intelligence
SUBJECT: Activities of Air America and China Air Lines
in Southeast Asia
1. This memorandum contains a recommendation in para-
graph 4 for approval by the Deputy Director of Central Intelligence.
2. I talked to Mr. George C. Denney, Jr., Deputy Director,
Bureau of Intelligence and Research, Department of State, about
Senator Fulbright's letter inquiring about Air America. I suggested
that we could prepare an accurate response to the Senator's letter
which would be complete except for CIA's relationship with Air
America, and that we could then carry the letter to Senator Fulbright
and orally discuss this classified aspect. Mr. Denney felt that that
was a possibility but was not sure that the Secretary would be willing
to send a letter which could be considered misleading. His suggestion
was that the Secretary sign an interim letter saying that he would be
glad to discuss the Senator's questions with him and invite him to
lunch for that purpose. I said I thought this would be all right with
us, but Mr. Denney then said he was concerned that this might put
the Secretary in the position of providing the Senator with informa-
tion which the Director had said he would deny to the Senator's
Committee. I said we had traditionally made a difference between
responding to an individui 1 senator's request and briefing com-
mittees, and Mr. Denney agreed that this was a familiar practice.
I said we might overcome this by arranging that, if the Senator
agreed to a meeting luncheon or otherwise, an Agency representa-
tive could be there who would brief on the classified aspects.
Mr. Denney thought this might be a good solution.
3. We agreed that at this time I would prepare a briefing
paper for the Secretary on the company and that Mr. Denney would
prepare the interim response to Senator Fulbright, and that we
would exchange these papers Monday morning, 20 June, for further
consideration. Attached is my proposed briefing memorandum for
the Secretary and also a draft letter which could be used if my
original suggestion were adopted.
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4. I recommend that I discuss this material and the
proposed response to Senator Fulbright with the Department
of State.
07,ta.k 64 e vd
LAWRENCE R. HOUSTON
General Counsel
Attachments
The recommendation in
paragraph 4 is approved
Deputy Director of Central Intelligence Date
Distribution:
0-General Counsel
1-DDCI
1-ER
1-ADDS
1-DDS/HB
1-FE
1-SOD
1-OGC/LC
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BRIEFING NOTE
SUBJECT: Activities of Air America and China Airlines
in Southeast Asia
REFERENCE: 14 June 66 Ltr fr Senator Fulbright to Secretary
of State
1. Senator Fulbright's letter asks for information as to
precisely what Air America's duties are in Southeast Asia and
whether it is used for paramilitary missions in Laos. He also
asks whether China Airlines is in any way involved in the American
war effort in this region or now has any connection with the Central
Intelligence Agency.
2. Air America is one of four companies which together
carry out extensive aviation services in the Far East. They are
owned and controlled by CIA to maintain a national aviation instru-
ment responsive to U. S. requirements in the Far East. The
Pacific Corporation is a Delaware company which is a holding
company for the others involved, and 100 per cent of the Pacific
Corporation's stock is owned by CIA through private individuals
as nominees. Air America, whose stock is 100 per cent owned
by the Pacific Corporation, is a Delaware corporation authorized
to engage in contract and charter airlift by the United States Civil
Aeronautics Board. Air America in turn owns almost 100 per cent
of the stock of Air Asia, a company organized in Nationalist China
under its foreign investment law and also authorized to engage in
contract and charter airlift by the Chinese and to maintain a large
maintenance base at Tainan. The Pacific Corporation owns 40
per cent of the stock of, and effectively controls, Civil Air Transport
Company, Limited, whose sole activity is the operation of the Chinese
flag international scheduled airline in the Far East and has no activities
bearing on Senator Fulbright's question.
3. Air America and Air Asia act as a joint venture, with
Air Asia supplying maintenance and much of the services to Air
America under contract. In Southeast Asia the great majority of
the airlift supplied by these companies is under contract between
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Air America and AID. There are minor contracts with the Depart-
ment of Defense and the Thailand border police patrol which have
no relationship to the Senator's inquiry. The main Air America
operation is carrying supplies and people into Laos under the AID
contracts, but about 40 per cent of this effort is in support of CIA
under the cover of AID contracts. Thus, in the company year ending
1 March 1965 the cost of airlift to AID was about $5, 800, 000 and to
CIA about $4, 300, 000. The AID portion is in support of normal AID
programs in the area. The CIA portion is primarily in support of
the Meo tribesmen in their resistance to the Pathet Lao and the North
Vietnamese. The great bulk of this is foodstuffs and other normal
supplies flown by Air America from bases in Thailand and either
landed or air dropped in Laos. A certain amount of arms and
ammunition are flown periodically in Air Force planes piloted by
Air America pilots to locations in Laos in support of the Meos and
occasionally trail watch teams on the eastern border. In Laos light
planes make further distribution of some of these supplies, and we
have to move AID, CIA, and diplomatic personnel as needed. Similar
services are performed in the same manner by Continental Air
Services, Inc., a subsidiary of Continental Airlines. This is a
straight commercial activity over which CIA has no control other
than by contract through AID. All of these services are performed under
the direction of the Ambassador and the U. S. Mission in Vientiane
and are coordinated between CIA, State, Defense, and AID in
Washington. In Thailand Air America has contracts primarily
for the movement of U. S. personnel but also as noted above to
service the border police patrol. In South Vietnam Air America
has AID contracts to service both CIA and AID programs.
4. The rationale for maintaining Air America is its responsive-
ness to national requirements; the fact that it can be caused to take
commercial risks or losses that a private company would not accept;
its unique ability to perform complex aviation maintenance under
Southeast Asian conditions; its area knowledge and experience; and
the security of its personnel and their willingness to undertake flights
that are extrahazardous, both from the nature of the terrain and the
airstrips involved and the frequent ground fire experienced, particu-
larly in Laos. Companies like Continental Air Services, Inc. can
perform a large amount of this on a commercial basis but cannot be
counted on in an emergency to the same extent we can depend on Air
America. Insofar as possible, however, Air America operates on
a normal commercial basis and no subsidy as such is required for
its support.
5. China Airlines is a company organized in Nationalist
China by Chinese retired Air Force officers. The company is
2
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completely independent of CIA and has no CIA participation or control.
However, it does operate in South Vietnam, particularly performing
domestic airlift in conjunction with Air Vietnam but also some contract
work in support of the CIA Station. It also has minor commercial
operations in Laos with which CIA has no connection. It addition,
it has performed some maintenance on planes which have served to
support CIA activities. China Airlines has ambitions to get into
the international scheduled airline business, and it was for this
purpose that it obtained the loan from the Export-Import Bank. It
is favorably regarded by the Nationalist Chinese government and
may at some time take over the scheduled business of Civil Air
Transport Company, Limited as CIA would like to be relieved of
the task of performing this commercial service.
3
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A
The Honorable J. W. Fulbright
Chairman
Committee on Foreign Relations
United States Senate
Washington, D. C.
Draft Response
to Fulbright
Dear Senator Fulbright:
In your letter of June 14, 1966 you inquired about the
operations of Air America and China Air Lines in Southeast Asia.
Air America is a Delaware corporation authorized by the United
States Civil Aeronautics Board to perform charter and contract
airlift and does perform such services under contract to the
United States Government in support of Government organizations
in Laos, Thailand, and Vietnam. The Government's requirements
are similarly served in that area by Continental Air Services, Inc.,
a subsidiary of Continental Airlines.
In Laos these contract flying services are managed and
conducted with the full knowledge and approval of the United States
Ambassador to Laos.
China Air Lines, an authorized air carrier of the Chinese
Nationalist Government, does perform contract flying and mairt enance
services in Southeast Asia for both the United States and Vietnam
Governments.
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If you would like to go further into the details of the
activities of these companies, I would be very glad to meet
with you at your convenience.
Sincerely,
Secretary of State
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FORM NO. 037 Use previous editions (40)
2-61 z. U.S GOVERNMENT PRINTING OFFICE 1961 0-5872.82
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DEPAiiIMENT OF STATE
BURZAU c. INTI:L1,1n7.NCE: AND RE6EAIICH
A
C r: I NT I 81
ILA:.
CIA - r. Holmc
FR0X: In - Mr. Hugez
Ju.17, 1966
I forwAr(i. io:rt:with (4 copy of a letter fro:a
i;aator to 'the Secrotftry. I would appreci-
ate your calliog D.o about thia aorzetime Saturaay
zoralag.
..cONFIDENTIAL .
pproved for Release: 2022/10/26 C03143693
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006/AY.0 D. tot...,0A.04AZA, 10W4 r
, �
4L04'.,C 0 It,C, vY.
veA tr. A,Nt: CA ALS:pg. KANr7,
Amf.,
VAANA %AD c..Irrawo P CA.r. 14.1, Zercate
SIV�Ar s13,
't*A.)..1. 4. C�C't� CO�414.
rol CoMM�rrEC ON FOnEIGN RCLATIONG .
CA...0,14,41.4. ',ft.... A ),
, f� ����''. June 14, 1966
, r.� � 101 Whin,
I'
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.The 1:ono:able:Jean nus:-c
Washinston, D. C.
Dear XI'. Secretary:
story in '.2h.? :ew_York Times of P:onday, June 13,
in whch Harrison 7.=1.:;r7reported from Laos, left a
ily.licatiOn that It �.h; coonly accepted that Air
subsidl cy Ccntral Intellic;enco Ancy
that much of ..7.:k;s VaDa''(:. is performins CIA missions. I
have heard first-hana reports from 'others to the same
effect..
I wonder whE:thor you could toll me precisely what
Air Amer:Lca's tlutyie ar,, not only in Laos but in
Thailan,1 and other countries in Southeast Aeia in which
it operates. I would also bo interested In knowing
whether it is trc that Air America is u:3ec.1 for f;0111
Para-military mtflon::, in :1,7a05 that cannot ho performed
L,; aircrt r-::. se the lyle of such aircraft
wola (;oht1.,1 of: thc: 1962 (;011(,V;A 110c1ll.M.
I have also no-l.co th;:.t.'6ho ,.7,:1)(rt-Impolt Bank has
c,ive:1 a loan of over 4 million to China Air
Lines, now operatins in Southoast Asia, Could you tell
:ne whether thic airline is involved in any way in the
Ameriez4n war cffor in this relon or now has any con-
nection with the CIA?
Enclosure
ct(1,
Sincerely yours,
9 6 3 0
(I, ,
/1,C..c) ...",2 ,.--,:--,.....-c. ---� ....-.1....,....��.,,- . A-...1.."
.1-U.-1.1111.)rlit vf
412 Chairman
nis)
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� MESSAGE FORM
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FILE, VR,
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.D.0-5/1/73 3 FE r46 4, SOD
Mel We
r. BANGKOK
LCDATA HBILKA
(date and time filed)
�
5 3
7.9;
(elite) (Pica)
(reference number)
CITE DIRECTOR
T1' 2] I
1. CAPTAIN ROBERT W. BAILEY IS FORMER HELICOPTER PILOT FOR
AIR AMERICA WHO HAD BEEN INVOLVED IN H-34 HELICOPTER ACCIDENT IN
LAOS ON 16 JUNE 1970. AS RESULT OF ACCIDENT INVESTIGATION BY COM-
PANY, BAILEY'S EMPLOYMENT TERMINATED 28 SEPTEMBER 1970. FAR
EAST PILOTS ASSOCIATION (FEPA) FILED GRIEVANCE AGAINST COMPANY ON
BEHALF OF BAILEY AND SAID GRIEVANCE NOW SUBJECT TO REVIEW IN
ACCORDANCE WITH PROCEDURES OUTLINED IN FEPA AGREEMENT. MR.
BRACKLEY SHAW, WASHINGTON ATTORNEY, ENGAGED BY AIR AMERICA TO
/-7.=
REPRESENT COMPANY; CAPTAIN WELDON D. BIGONY, PRESIDENT OF FEPA,
WILL REPRESENT BAILEY.
2. SHAW IS REQUESTING BIGONY TO COME TO WASHINGTON END OF
DECEMBER FOR CONFERENCE ON CASE. UNDER FEPA_ AGREEMENT ON
SYSTEM BOARD OF ADJUSTMENT, IF HE AND BIGONY AGREE THIS WILL END 5
4 4
3 3
2
APPEAL. IF NO AGREEMENT, PROCEDURES CALL FOR THEM TO SELECT
RELEASING OFFiCER
COORDINATING OFFICERS (corNiugUED)
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Excluded fl CAM automatic
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REPRODUCTIOI
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CITE DIRECTOR
Z//16O -1
THIRD PARTY FOR FINAL ARBITRATION OF MATTER. THIRD PARTY SHOULD
BE SOMEONE WITH APPROPRIATE SECURITY CLEARANCE IN VIEW OF NATURE
OF FLIGHT AND CARGO.
3. WE WOULD APPRECIATE IT IF YOU WOULD DISCUSS WITH DEFENSE
ATTACHE BANGKOK, WHO WE UNDERSTAND IS AIR FORCE COLONEL, IF HE
WOULD BE IN POSITION TO PARTICIPATE AS THIRD PARTY IN EVENT FINAL
SYSTEM BOARD OF ADJUSTMENT PROCEEDING REQUIRED. SUCH HEARING
WOULD BE END OF JANUARY OR FEBRUARY IN BANGKOK AND MIGHT TAKE
AS LONG AS SEVERAL DAYS. IN EVENT DEFENSE A.TTACHE IS NOT IN POSI-
TION TO ASSIST, COULD HE OR YOU SUGGEST QUALIFIED PERSON TO ACT AS
THIRD PARTY. THIS SHOULD BE SOMEONE OF SOME STATURE, PREFERABLY
WITH EXPERIENCE AS HELICOPTER PILOT IN VIEW OF TECHNICAL NATURE
OF SOME OF THE PROBLEMS INVOLVED. IDEALLY, SEVERAL NAMES COULD
BE SUGGESTED FROM WHICH SHAW AND BIGONY COULD CHOOSE.
4 END OF MESSAGE 4
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WILLIAM E". NELSON
c/FE
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CITE DIRECTOR
PS /
SA iDDS /HBILKA
C FE /TBL
r.
LAWRENCE R. HOUSTON
General Counsel
o
ODA
ODA
4
3
.2 2
COORDINATING OFFICERS
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