(THIS DOCUMENT 13 THE PROPERTY OF HIS BRITANNIC majesty's oo^mr^m) SECRET. NOTE BY DIRECTOR GENERAL OF CIVIL AVIATION, AIR MINISTRY, ON BRITISH TRANS -ATLANTIC* AIR ROUTES AND PLANS FOR BRITISH AIR SERVICES IN AND THROUGH THE WEST INDIES. 1. In the North Atlantic attention has necessarily been concentrated on two Trans-Atlantic air routes, namely the "direct" route via Ireland and Newfoundland, and the "southern" route via the Azores and Bermuda* While operation on the former has hitherto been limited to the summer months, it is probable that the stage will shortly be reached when the use of landplanes will be possible throughout the year except for short periods when thaw conditions prevail. Newfoundland is the key of the "direct" route and Bermuda of the "southern" route* As the result of negotiations between the Governments of Eire, Newfoundland, Canada and the U.S.A. at the end of 1935, a permit was granted for 15 years from 1st June, 1936, to Pan American Airways to undertake civil air transport services not exceeding two round trips per \Peek between the U.S.A. and the U.K. via Canada, Newfoundland and Eire or via Bermuda and other countries. This permit was issued on conditions which secured precise reciprocity for services of Imperial Airways to the U.S.A. Pan American Airways are at present prevented by the U.S.A. Neutrality Act from availing themselves of their right to use the "direct" route, but they are using Bermuda both for Trans-Atlantic flights and for a service between that Colony and the U.S.A., the permit for the latter service having been granted on similar precise conditions of reciprocity* 2* In the West Indies Pan American Airways have been enjoyingfor some years facilities in British territory for the operation of regular air services. These facilities have for the most part been acquired by direct negotiation between the American Company anc" the local administrations concerned and without the grant of corresponding reciprocity in U.S.A. territory for British serviceSc Thanks to these facilities, Pan American Airways have been enabled to operate trunk air services - (a) through the British West Indies and British Guiana down the eastern sea-board of South America, and (b) across the Caribbean Sea via Jamaica and down the western sea-board of South America; also local services - (a) in the Caribbean Sea area, and (b) between Miami and the Bahamas (Nassau)* A statement, based on immediately available information, showing the facilities conceder: to Pan American Airways in the various British territories in the West Indies is attached (Annex I). This American Company has at present a virtual monopoly of air operations in this area. Plans/ Plans for Britiyh air services in anc- through the West Indies contemplate: - (a) a main line service, Canada - Bermuda - Antigua - Trinidad - South America; (b) an inter-island service between Trinidad, Barbados, the Windward and Leeward Islands, possibly extending to Jamaica. If landing rights in U.S»Ao territory at Miami could be secured this l.-^cal service mi^ht be extended to Miami« 3* The war has enabled Pan American Airways to forge ahead of this country in Trans-Atlantic operations, and it will be difficult for this lead to be overtaken. In the West Indies the dominant position gained by this Company has in the main resulted from the exceptional opportunities which the geographical situation of the U.S.A* affords for American commercial air operations in this area, 4. The interests of British civil aviation require that the hands of American air transport operators shall not be further strengthened as the result of the present negotiations*. In particular; on the North Atlantic route it is important that the bargaining value of our existing civil aviation bases shall not be lost by the creation of new ones out of our control; and in the West Indies that the position of Pan American Airways shall not be further consolidated. It is also important that the U.S.A. should I be precluded from making air facilities available for the I commercial air operations of nationals of third Powers. 5. The position in the several localities set out in Cmd.6224 has been examined in the light of the considerations set out above, and the following conclusions (which are provisional as the full proposals of the United States Government have not yet been put forward) have been reached regarding the measures necessary to safeguard British civil aviation interests:- ( (i) that the sites at present in use or in contemplation for commercial air transport services (see Annex II*) should be excluded from the scope of the negotiations; (ii) that the use rf the bases to be leased to the United Stated Government should be limited to defence purposes. This should also apply, except in case of distress, to any tele- communication stations erected at the bases A summary is attached (Annex II.) of the existing and contemplated civil aviation facilities in the localities concerned. FrC* Shelmerdine, • Director General of Civil Aviation. Air Ministry, 4th October, 1940c