800.796/8–844

Memorandum of Conversation, by the First Secretary of Embassy in Canada (Clark)71

I mentioned to Mr. Macdonnell72 Prime Minister Fraser’s statement which was reported in the press this morning to the effect that he hoped to see established a Pacific Air Service which would be jointly operated by Australia, New Zealand, Canada and Great Britain, and asked him whether Canada had changed its policy with regard to such a service.

Mr. Macdonnell said that, as Mr. Howe had announced in Parliament, Canada had a desire to operate a Pacific Service. He thought it quite likely, therefore, that Canada would be prepared to join with Australia and New Zealand in the joint operation of such a service. He was rather surprised, however, to see Mr. Fraser’s mention of the U.K. as a further partner.

Mr. Macdonnell laughingly admitted that the Canadian draft of an international air convention had purposely included an arrangement which would permit a great deal more intermediate traffic on a joint service such as that proposed by Mr. Fraser than would be possible on a service operated by a single country.

Mr. Macdonnell said that he knew of no proposed Canadian service to South Africa, and in addition he thought such a service would be unprofitable.

  1. Received in the Department of State on August 12.
  2. Ronald Macdonnell of the Canadian Department of External Affairs.