MEMORANDUM OF INSTRUCTIONS FOR THE
UNITED KINGDOM R3PRLSENTATIVK S.
This question is covered in the separate Aide
Memoire issued by the Foreign Office.
This question is covered in the separate Aide
Memoire issued by the Foreign Office,
In this event the course of action should be to
intimate to the United States Government that in the
circumstances the Australian and New Zealand Governments
would have to re-consider their attitude towards the
activities of Pan American Airways involving the grant
of facilities in their respective territories,.
This question is covered by the Aide Memoire of
the Foreign Office referred to above.
If the United States Government should again
take forcible action as at Canton pressure could, it
is considered, best be exercised in the first instance
by the New Zealand Government v/hich possess the right
in default of the service being re-established within a
specified period to cancel the existing Contract with
Pan American Airways*    While in present circumstances
it might be undesirable to proceed to this extreme, the
implications of a refusal on the part of the United
States to participate in the suggested Conference while
yet continuing to over-ride British Sovereignty claims
would, it is suggested, justify that Treasure*
In the event of the United States Government
on the one hand making no advance towards the Four
Party Conference and on the other hand making no
unforeseen move in regard to other pacific Islands the
selection of the     moment :to press again for such a
Conference would depend upon the completion of the
steps for the consolidation of t'.ie Brisish title to
Hull and Christmas Islands anr1, upon the progress made
in the formulation of definite proposals (operational
and financial) for the establishment of a British Trans-
Pacific service*
Questions 4 and 7, It is contemplated that British and American
air services should be established on a reciprocal basis
as regards the provision of facilities and operated in
close collaboration*   Pan American Airways should
enjoy landing rights in New Zealand, the British
Company landing rights in the United States, en route
to Canada, and both Companies "open rights" in the
intermediate islands, where facilities are necessary
for the operation of the services*    (In the note on
Question 7 the word 'intermediate1 should be inserted
before the word 'island1 in the phrase "open right on
all the islands," )
Question 5, It seems desirable that, subject to satisfactory
progress being made with regard to the points raised
in questions 2,3 and 8, an application through
diplomatic channels should bo made without delay on
behalf of a British Company to be nominated by the
British Governments for landing rights in San Francisco
Question 1(a).
Question 1(b).
Question 1(c).
Question 1(d).
Question 2*
Question 3,
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Question 5 (contd.),and Honolulu so that aircraft
Question 6.
Question 8.
Questions 9 and 10.
Additional question,
Nature of Trans-
Pacific Service
and constitution
of joint Operating
Company.
The
may he "built for the
purpose without any doubt that permission to use them
on the route would subsequently be forthcoming.
British Company selected should also lodge an
application with the American Civil Aeronautics
Authority after
agreed,
the United States Government have
in principle, to the grant of such rights.
If the United States Government refuse the
application the course recommended in Question 2
above should be taken-
The Australian and New Zealand Governments
might be in a position to suggest, in the light of
the action already taken on Hull and Christmas
Islands- what further steps should be taken to
strengthen the British claim t   these Islands,
having regard also in this connection to the point
of view of defence*
(It is presumed that separate instructions have been,
issued with regard to matters of defence which will
embrace these points)«
It is essential in these proposals to avoid
a financial burden lisproportionate to its interests
in the service falling upon the United Kingdom
Government.
A suggesting to utilise Trans-Tasman Airways,
when formed,as the instrument to operate the service
may arise*   Present constitution of this Company is
not however suitable and lengthy negotiations woul.l
inevitably be involved in reaching an agreed
modification of its forme
The operational difficulties presented by
the Trans-Pacific route are formidable and only an
organisation of proved technical and operational
ability could expect to overcome them successfully.
Of British Operating Companies the necessary
experience is possessed in an unique degree by
Imperial Airways*    It cannot, however, be expected
that this Company will be prepared as in the case
of the Trans- Tasman Company to put their
operational and technical experience at the service
of an organisation in which they do not have
operational control.    It is considered that the
service in its experimental stage should be
operated by Imperial Airways on behalf of and at the
jDint cost of the four Governments for a definite
period, during which time the Governments should
discuss and decide upon the nature ff the
organisation to which the services should eventually
be entrusted, and the Governments should also
share on an equitable basis the cost of any ground
facilities required elsewhere than at the terminal
points for both experimental and permanent operations.
It would be desirable to secure that the operational
control in the permanent arrangements should continue
to be vested in Imperial Airways.
In this connection reference might be made
to the formation of the Corporation which is now
in train merging the interests of Imperial Airways
and British Airways and to the conception of the
development in due course of this Corporation into
the wider strength of an Empire Corporation fully,
representative of Dominion interests.    Such an
organization while being in a position to take
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advantage of t^o technical and operational experience
of the two Companies mentioned would adequately
safeguard Dominion interests in the service.