WEEKLY INTELLIGENCE SUMMARY NO. 40

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A005000010040-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: April 24, 2013
• Sequence Number: 40
• Publication Date: November 30, 1948
• Content Type: REPORT

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Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010040-1
`~' SECRET
OFFICE OF REPORTS AYill ESTIMATES
TRANSPORTATION GROIIP
Yfeekly Intelligence Summary No. 40
The Czechoslovak National Airline, CSA, has not given up hope of
establishing a direct air connection between Prague end Istanbul, via.
Belgrade and Soffa, and has also bean pressing Turkey for the right tp
extend its present Istanbul flute (viA Rome and Athens) omvard to
Ankara, Beirut, Baghdad end Tehran. (Item No. 1, B)
IIK authorization for overflight by the Polish airline LOT, of the
tIR Zone of occupation, Germany.(in connoctiontivith recently arranged
Belgian-Polish reciprocal air services), probably brill not be granted
pending current US-IJI{ discussions.rogarding a common policy of con-
taining the Satellite airlines. (Item No. 2, C) '
Acquisition of a substantial interest in Air Ceylon by Australian
National Airlines, Pty. (AB`A), represents the most recent manifestation
of this airlino~s determinhtion to build up its strength and continue ..
its resistance to the Australian Governmont~s program for the absorption
of all Australian civil airlines into the Govermnent-owned Trans-
Auatr8lia Airlines (TAA). Although /?o. 4 Air 77
DECLASSIFIED
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~Thtl I~ceno'hd Italian; and StsiBs Gooerrimen~s axle tlotiv taking steps
td ehtorOS strict aompliatices by US ii~rAgular air caf'riers, with trieir
local regulations. (Itad fto. 6, B)
Tho aotion.,oP tKe &tviss Coearitmont in holding. a hfexi.can dd48 airs
oraft, stxap~oted oi' bding.destined ?or Israblp ie;'in~licatido of its
dosire to cooperate c~S.th t{16 II$ and UN in ttio prohibitiio~ of aYan~
doatine air traffid'fo tho Dear EaAt., The inoid~t again iliustratos
tho Inok of effbctivo Ooatfol ovor tho moaoment~of aircraft in non-
oched03ed international opbrations~ (Itau Ydos 6~ 8)
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SECTIOA II. CIIRRENT 1~9f3,OP3if3dTS
CIVII, A9IATIOH
1. The Caechoalovak Rational Airline, CSA has not given up hope of
eatab s g a rea air connection batueea Prague and Istanbul, via
Balgrado sad Sofia. Past attunpts to establish this route have bean
oonsistontly blocked by Bulgaria's roluotanco to permit CSA~e opare'-
tion of the Sofia-Istanbul segment. UnaonPirmed reports navy 18dioate
that Bulgaria may be willing to permit CSA'a aircraft to fly along a
corridor from Sofia to Burgas on the $latsk Sea, end thence over rater
to Ietnnbul. This would Be to the disadvantage of Turkey, hovrever,
Which has no air agreement with Bulgaria'and therefore could not make
flights to Prague by this diroat route.
The Caeohoelovaks havc also boon pressing Turkey For the right to
extend CSA's present Istanbul flights (via $ome and Athens) omvard to
Ankara, Hairut, Baghdad and Tehran. Tho Cseahoslovak-Turkish bilateral
air agreement gives the Caeohoslovalc airline the right to operate air
setvlc'es through Turkey to "other ocuntriea beyond." Turk?y, which is
not inclined to further Czechoslovak air eapanafon in the t7oar East,
may therefore be faced with the ohoico of either granting the request
pr abrogating its air agraereent with Czechoslovakia. In aq}r avant, the
Czeohoslovaka Brill Pind it increasingly difficult to secure operating
righto in the Arab oountrioa (Sae T~C Summary kJo. SB), in view of
Czechoslovak air operations to Palestine, and there fs even soma doubt
that they'caa air landing rights at Athens (Sao T~G Summary
~nta4n-tb
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Ro. 86). ~
2. A_ Belgian-Polish cioll air arrangement, negotiated in connection
with rooent tra a agraemea~, grams t-~Polieh airline (LOT) and the
Belgian air carrier (SABE9A) the riP,hL to establish reciprocal air
servieea between ~larsew and Brussels. Since Polish aircraft flying the
proposed route must overfly the Hritish occupation-zone in Oermaay,
Polnnd notiFiod the U% of LOT's intention to inaugurate the :Ynrsaw-
Brusaels air service by mid-December, indicating that the now route
would form part of I.OT's present operations between Warsaw end Parie,_
which the U% previously authorised. However, the British have refused
to accept the Polish view, and mill probably require the Poles .to re- -
quest separate overflight privileges. In vier of pending US-U% dis-
ausaions with regard to the adoption of a common policy of containing
Satellite airlines it is ualikel that the UB will sot on such a request
at thin time. STAT
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`? SEC~R fi'
8. Ao uiaitioa of a substantial interest in Air Ceylon by Australian
" Rational Airlines, F y. '~- , reprosen a ~s~e?aent manifostatioa
of this airline~a determination to build up its strength and continue
its resistance to the Auatraliatt Government`s program for the absorption
of all Australian civil airlines into the Government-ormed 4'rana-
Australia Airlines (TAA).
AtiA was organize@ itt 1986 at the request of the Commonwealth Govern-
ment. By 1944 it had firmly established its domestic operations and was
is a position to develop routes to Elxropo and Asia. Zn 1946, hoaavar,
the Australian Government adopted a policy of nationalised air transport
and Pormod Trans-Australia Airlines (7AA) ae its chosen instrument, with
authorisation to purohase privately-owned airlines. 1Yith the exception
of ANA, ell ortant airlines (including Qantsa F}npire Airways and
Guinea Airways voluntarily foined the oonaolidation. TAA also acquired
the Australian Goverffient~e shares in British Conmo~realth Paoifio Air-
linea (BCPA) and Tasman Aspire Aircreys. Aa a result of AIdA~s rocnlci-
~rance, the Goverment is now sub eating the company to stiff retaliatory
oompetitiott in the form ofs drastic outs in TAA faros on routes parallel-
ing ANA; denial of Government permits for development of ANA ground
facilities; introduction of onerous routs chexges; end a dieoriminatory
reduction in Qovernment-controlled gasoline alloiutenta.
9~e foregoing measures have not prevented AEA from continuing a
steady and profitable growth. Although the company hen been unable to
aeourc the necessary Government permits for any international operations
except its lucrative contract to transport migrants for the International
Refugee Organization ?rom Paris to Sydney, it has found other overseas
outlets by indirect masse. For example, it has purchased a 40 percent
interest in Cathay Pacific Ain~rays, Ltd., of Hong Kong, which operates
e route from the UK to Sydney via 1Sanila, Port Bloreaby and Uarwin. The
acquisition of its 49 percent interest in Ceylon Airnays r~'i11 enable
ANA to participate under a management contract in the development of a
US-Ceylon route. ANA also proposed to operate a Trans-Paoifio route "
uttdcr contract for the Chinese National Airerays Corporation, but failed
in this venture due to rofueal of the Chinese Government to approve the
operation.
Although ANA initiative and imagination have provided a temporary
respite for the company, it is not likely that it can oppose Australian
polioy indefinitely, and the odds remain in rara~t
control of all Australian civil aviation.
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~`'' SEAT "
4. The Honduras air carrier Tr ortsa Aeroos de Honduras which
has reoon y attemp to puro a ro s e e q or a trans-
portation of DP~a frdm Italy to Auatrnlia (Soe T~G Summary llos, 81
and 32), has now Dome under fire from both the Honduran and Italian
Covornmenta. The Honduran Minister of War has labelled Transportea
Aareos an illegal organization and has indioated that its use of tiro
i+onduran flag iaould bo unlawfliY. Aooording to a Swiss aviation
3ournal, moreover, the managing director of the line fs under investi-
gation by Italian polioe.
b. The Fronah, Itallaa and 3wise Governments era now taking steps
to a orae s ria comp asae, y US irre ar air carriers, with their
local regulations. There hna boon a_marked increase of oporationa by
these carriers in Resters Elzrope in aonneotioa with the transport of
DP's to Palestine. Many suoh operntiona are carried out with flagrant
disregard. for the air traffic controls and olearanoea required by
ooustries through whioh these aircraft pass, For example, Asaoaiated
dir Transport, a IIS irregular oarrier, has admittedly parried out at
least seven rouad-tripe. betareen Bsaraeille and Haifa without the re-
quired French olearewoes.' Otha~ IIS aircraft have been ferried to~
France from the IIS without advance oleareaoes.
Pranoe's temporary prohibition of all non-soheduled flights be-
teeeen Franco and Palestine reflaoto its desire to atrsngthen eziating
oontrols in order to prevent IIN truce violations in French territory,
Deley in lifting the ban may also indicate an attempt to devise con-
trols for the protaotian of its own carriers against foreign competi-
tion, and to arrange for the participation of private Fronok irregular
operators in the profitable DP traffic to Palestine. The Italian
Government hoe indicated that it will not grant future oloaranaea to
Associated Air Transport, apparently ea a result oP the unauthorized
use by that carrier of Italian airfields on route to Haifa, and the
Swiss Federal Air Offiao Sa now maintaining closer aurveillanae of
6. Tha &lexioan C-46 aircraft (%8-JID) crhich has,been kold by two Swiss
Governmen$ at Gonevn, on auspi~on t t the aircraft is destined for
Israel, is owaod by Proveedora ?sundial of Mexico City. :hie company
has been affiliated with the IIS-owned Service Airways (see T~6 Summary'
No. 31), whose claadeatino and illegal activities in support of Israeli
forces have resulted in criminal prosecution in IIS aourto,
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Under existing control lams, the U3 Government could not have
prevented the departure of this foreign-registered aircraft from the
US, early in November, since its doaumeatation urns apparently is
order and it rfas not found to be aerrying contraband. The US Drew
which ferried the airoraft to Ehrope was apparently under orders to
deliver it in Geneva to agents for the British Air Span Trawl
Coripaay.. Prior .to their departure from ()ensue, 'the Dram indiaeted to
$A188 authorities that the aircraft would be flown to~Iarael.
This action of the Srriae Govermnent is indicative of its desire
to aooperate with the US and UN in the prohibition of cle.ndestine air
traffic to the Near Fast. However, if the alleged transfer of this
airaraft to Air Span has been legally accomplished end there is no
direct evidence that it ie actually destined for Zsrael, it is unlikely
that the Swiss will choose to continuo to hold the aircraft. In sny
event, the incident again illustrates the leak of affective control
over~nt of aircraft in non-scheduled international aperatioas.
-STAY