OUTCOME OF UNITED STATES-INDIA AIR TRANSPORT NEGOTIATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003000070006-0
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: December 22, 2005
• Sequence Number: 6
• Publication Date: February 10, 1955
• Content Type: MF

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OPERATIONS COORDINATING BOARD
Washington 25, D, C,
February lo, 1955
MEMORANDUM FOR THE BOARD ASSISTANTS
SUBJECT: Outcome of United States-India Air Transport
Negotiations
The attached paper on the "Outcome of United States--
India Air Transport Negotiations", transmitted by the
Chairman of the OCB Working Group on NSC 5409 (South Asia),
is forwarded for your information,
Elmer Bi Staats
Executive Officer
Attachment:
Subject paper..
NSC review(s) completed.
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Outcome of United States-India Air Transport P
Negotiations T
When it became apparent during the past month that it would be
impossible to reach an understanding with the GOI under which the
Air Transport Agreement could be continued in force subject to
mutually'acceptable interpretations thereof, the US requested that
the GOI issue permits to PAA and TWA enabling them to continue ser-
vice at a reduced level of two round trips per week to and through
India. The US also offered to limit FAA to one traffic stop at New
Delhi or Calcutta on each flight. This was accepted by the G0I and
permits were granted for one year.
Although this arrangement is not a very happy compromise, the
following- must be acknowledged.:
1. Although in the 1953 consultations in New Delhi the
US delegation offered to reduce the TWA service from three
flights to two flights per week, it was also authorized to
go so far as to propose a similar reduction of PAA service if
judged necessary to secure agreement. The present level of
operation is comparable to that which the US was willing to
agree to if necessary 18 months ago as an interpretation of
the Agreement. This complete proposal was not made in 1953,
primarily because this concession would not have resolved the
differences between the two governments' positions at that time.
2, Continuance of two flights per week, which appears to
be a minimum level of service, is far more acceptable to both
the US Government and the two airlines than suspension of
service to India or reduction to one flight each per week, the
maximum justified according to the Indian interpretation of
the Agreement.
3. Continuance of services is believed to place the US
in a better position to work out a satisfactory long term
arrangement with the GOI than would be possible if service had
been terminated.
I. The US aviation policy position is preserved with a
minimum of compromise. The US did not accept the GOI position,
which, in addition to curtailment of frequencies, also called
for specific limitation of traffic carried between India and
third countries in order to provide Indian airlines with
"reasonable and adequate opportunity for development in their
legitimate sphere." Acceptance would have resulted in immediate
demands from other foreign countries for immediate revision of
US policy and consequent pressure for reduction of services to
such countries.
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_2_
From the outset the 191x6 Air Transport Agreement had, in
Article IX, a serious and unique weakness from the US standpoint
in that it gave the GOI the unilaterial right (following consultati)ns)
to impose restrictions on US air services to and through India.
The GOI had never exercised this right, apparently because of its
conviction that the US would have resisted strongly any such effort.
The US remained in a weak bargaining position in view of the lack of
Indian air service to the US.
Following receipt of notice of termination on January 111, 19511
the Department, the CAB, and representatives of the two airlines
agreed to defer until fall discussions with the GOI, in anticipa-
tion of a modification of the Indian attitude toward international
air service so as to bring it closer to the US attitude. This change
did not develop, and the Embassy commenced discussions with the GOI
in'l ate November, scarcely six weeks before expiration of the one
year notice period.
In view of the short period of time remaining, the best pcssib e
efforts were made. Several successive approaches to the GOI were
made by Embassy New Delhi, aimed at preserving the 19116 agreement.
Following rejection by the GOI of these proposals, and US rejection
of certain counter-proposals, the US requested authorization to con-
tinue services on a unilateral permit basis. The GOI apparently
desired to find some way to accommodate the US without seriously
jeopardizing its own position and, hence, granted the authorization
as requested. India at the same time expressed the hope that a new
agreement could be negotiated within the year, The GOI had in mind
the fact that the essence of its proposals to the US had already
been incorporated in its agreement, negotiated in previous years,
with the UK, Netherlands, Australia, and others, The US carriers'
services are continuing for another year, on a reduced frequency basis,
without any specific limitations as to types of traffic.
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