711.4127/12–1045: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

12948. Hildred told Satterthwaite today that when British Govt learned PAA and American had filed identical rates with CAB, and following meetings held on Saturday,39 they sent telegram to Halifax, observing that while there was no rate conference, informal consultations had taken place among the operators after which a $375 rate was put into effect by some of them. He said that pending certain assurances that neither of the carriers would try to circumvent the $375 rate through large baggage allowances or through cheaper rates to Eire and on to England from Eire at a rate the sum of the two halves of which would be less than direct fare, the British Govt would allocate 500 seats per week, which could be expressed if we preferred in terms of 14 frequencies per week, for distribution by the US Govt among its carriers, until an agreed recommended rate was arrived at and approved. Hildred said he would agree to eliminate words such as “consultation”, or “agreed” in any public statements or releases, and thought we should equally refrain from raising this issue.

Reference Embassy’s 12921, December 9, 6 p.m. We feel unless something like the foregoing is worked out, the present unsatisfactory status quo will remain until after the bilateral talks or possibly until after the January IATA meeting.

Winant
  1. December 8, 1945.