BRITISH EMBASSY, IASHINGTON, D. C. August 1st, 1939. Ho. 848 My Lord, With reference to correspondence ending with your despatch No* 717 (A 4766/fel/tf) of the 11th July regarding the Trans Pacific Air Route X h§ve the honour to transmit herewith copies of a Bess age sent by the President to Congress on the 21st July transmitting a supplemental estimate of #900,000 "to provide tow payment under contract for carrying foreign airmail, commencing In August 1939 over a route between San Francisco, California, and Australasia »n Your Lordship will note from the letter of the Director of the Bureau of the Budget to the President that full freedom of action is, by congressional direction, reserved for the United States Government aa regards any foreign application for landing rights in United States territory In connection with the operation of an international air service. 2#-" According to a presa report from San Francisco dated July 26th, Pan-American Airways officials there stated that an air-mail service from San Francisco to Australia would be inaugurated on August 15th. The date may not bo correct: bat the press of the 1st August announces that Pan-American Airways have filed an/ The' Right Honourable The Viscount Halifax, K. 0 etc etc., etc. VALMsCB:ACEM:CL an application Vita the Civil Aeronautics Authority for approval of a service from San Francisco to Auckland, via Honolulu, Canton Island, and Noumea, and are ready to begin the service as aeon as approval la given* 9« I am sending copies of this despatch direct to the Prime Minister of Australia tad to the High Commissioner for the United Kingdom In New Zealand and at Ottawa, / C/ Z have the honour to be, With the highest respect. My Lord, Your Lordship's moat obedient, humble servant, (For the Ambassador) (SUD) V« A* L* MALL25