Dear Mr. Symington, You will recall that in Bermuda last December the U.K. representatives undertook to ascertain on our behalf whether the Portuguese government would be prepared to enter into an aviation agreement with us, and if so, what form of agreement would be most likely to be acceptable since that time a Canadian Consul has been appointed in Lisbon and has apparently taken part in discussions at the British Embassy in Lisbon on this matter. Through him we have learned that the British Embassy has informed the Foreign Office in response to its direction on this matter that it would like further and clearer instructions as to the Canadian requirements before taking the matter up with the Portuguese government. You will note that the U.K. government itself has not passed this information on to us; it has been received through our representative, but presumably we will hear from the U.K. on this matter in the near future.

In view of the long delay in getting any action through the U.K., I would be inclined now to take the matter up through our own Consul who could continue to work in cooperation with the U.K. Embassy. I would be glad to have your views on this.

In addition it may perhaps be advisable to communicate some definite instructions or proposals. There would appear to be three courses which we might follow.

We could merely ask permission of Portugal to make use of the Azores or Lisbon in the event that TCA has to make a non-traffic stop there on occasions when the alternate southern route is used by TCA. This would not require any bilateral agreement and could be accomplished simply and rapidly by an exchange of notes.

We could go a step further and suggest that Canada and Portugal ex­change the two freedoms. This too would be a relatively simple matter and would not require any lengthy bilateral agreement.

We could conclude a bilateral agreement exchanging the first four free­doms and perhaps including the formula which we propose to try out on Newfoundland and which leaves the door open for the carriage of fifth freedom traffic later, (i.e. some such phrase in relation to traffic rights as, "and may also carry such additional traffic as may be requested by the government of Portugal").

The Canadian Consul suggests that if we expect any traffic requirements in Portugal in future years it would be preferable to conclude an agreement now rather than waiting; this argument is based on the apparent readiness of Portugal to enter into almost any bilateral aviation agreement at present.

My own preference at the moment would be to prepare a draft bilateral agreement based on the four freedoms and to send it to our Consul as the sort of thing we would like to have. Before speaking to Mr. Howe on this matter, however, I would like to have your comments.

sincerely yours,
J. R. BALDWIN