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MINUTE SHEET.
Reference.....et &
The position appears to be briefly as follows:-
2. In its original form the agreement which
subsequently became the destroyers-bases deal provided
for the lease to P.A.A.- of facilities in various British
territories in the Caribbean and elsewhere.    It was then
necessary to reserve, on behalf of British aviation the
richt to use on   ofejf'terias any facilities thus granted to
P.A.A.    The proposal to «*felease to P.A.A. was in due coarse
dropped in favour of the present agreement, and H..M.G. now
wish to exclude P.A.A. from the use of the facilities which
we have granted to the U.S. naval and military authorities.
2. iiieanwhile, however, we had on two occasions,
August 8th ana September 26th, in writing to the S.D.
formally reserved the right of any British air transport
undertaking to utilize facilities established by American
interests on British soil.    This, as the P.O. point out, at
least implies that we consider that P.A.A. have the right
to use the facilities too.    In replying to our note of
September 26th, the S.D. comment on this aspect of the
question as follows:-
"In reply you are advised in view of the present
projects to establish Army and Navy bases on areas
to be leased from the British Government, that the
original plans to have Pan American Airways construct
certain facilities on British soil have been abandoned
with the exception of seaplane facilities at Port of
Spain, Trinidad.    Pan American Airways plans to expand
its seaplane facilities at Port of Spain, Trinidad,
on behalf of the V/ar Department, but such facilities
will be commercial in character and not under the
control of the United States Government.    It is not
contemplated that commercial aircraft will be authorized
to operate from any of the Army and Navy bases to be
constructed in the leased areas, except in case of
emergencies or for strictly military purposes, unde:
supervision of the War and Navy Departments. Shoiiid
arrangements be made at some future time, however, to
permit America., couuaercial aircraft to operate from
these bases, sympathetic .consideration will then be
ftiven to the ^ranting of .siiailur facilities to British
air transport undertakings at reasonable commercial
charges".
&.Thus, the U.S.G., while saying that they do not
intend to allow coaimercial^a^^^raf t^t^r£ige the naval and
military bases at present^ envmagc i_a possibility of doing
so in the future, and promise that in that case similar
facilities will be granted to British aviation.    We are
thus in the awkward position of havinc to ask the S.D. to
refuse to their own aviation what we have been pressing them
to grant to ours.    I think that all we can do is to reply to
the S.D.  taking note of this passage in their communication^
and saying that in view of subsequent developments we assume
that U.S.G. will consult with H..M.G. before making any use
other than military of the bases.    The S.D. note *w*e£a new
factor which was not present when P.O. despatch No. 84
(see 3044/1/40) was written,and perhaps our proposed reply
to the S.D. should be referred to the P.O.  for their
concurrence before despatch.   (/^. ^t^^-^^^\ i^^LcL^
r
&  There remains     small point oa* the aeroplane
facilities for P.A.A- at Port of Spain, to which reference
is made in the S.D.'s note.    I have not been able to lay
my hand on the papers in regard to this,
can assume that the contract with P.A.A. wouia pro1
for reciprocity.    Perhaps the A.A. could elucidate this,
point.
21st January, 1^41.
I think we.
vide
fy£v Attache
Mr. But
I   /ir* £r     s. SfSA^
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