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Volume #13 - 320.

CHAPTER VII

CIVIL AVIATION

PART 3

BILATERAL NEGOTIATIONS

320.

PCO/A-15-1-J

Assistant Secretary to the Cabinet
to Minister of Reconstruction and Supply

Ottawa, January 31, 1947

Dear Mr. Howe:

RE CIVIL AVIATION AGREEMENTS WITH NEW ZEALAND AND AUSTRALIA

As you know, we have been in process of negotiating an agreement with New Zealand and on the assumption that we would be able to work out satisfactory arrangements with the United States, we had intended to provide for exchange of fifth freedom rights in the agreement with New Zealand. We had also told Australia that we would, at an early date, be prepared to open our agreement with Australia on fifth freedom rights.

In view of the recent developments with the U.S., I would be inclined to let the Australian situation stand as it is. We have already told them that we would have no objection to them carrying fifth freedom traffic into Vancouver for the present, but we might perhaps best let revision of the formal agreement with Australia stand over for a while.

I would now be inclined to pursue a similar course with New Zealand, i.e. tell them that in view of recent developments we would prefer not to conclude a fifth freedom agreement with them, but would be quite happy to conclude a fourth freedom agreement with them similar to that which we have with Australia. We could also tell them that pending development of a situation where we could conclude a fifth freedom agreement with them, we would have no objection to them carrying fifth freedom traffic into Vancouver on a temporary basis.

If you agree with this course, we will see that this information is transmitted to New Zealand and Australia. I believe that Mr. Henry is in agreement with the proposal.

Sincerely yours,
J.R. BALDWIN



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