Foreign Relations of the United States, 1952–1954, Africa and South Asia, Volume XI, Part 2

611.9194/12–2254: Telegram

The Secretary of State to the Embassy in India¹

confidential
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Washington, December 23, 1954—7:46 p.m.

791. Urtel 851.² Department and CAB authorize Embassy to inform GOI that, subject to GOI acceptance Approach 4 as elaborated, USG willing engage New Delhi after January 1 brief capacity consultation on services now existing. USG agrees such consultation would end prior January 14 and if mutual agreement regarding justified levels US carrier services not reached, GOI would have unilateral right impose restrictions. In such consultation US will find itself in position to meet Indian point of view by reduction US services to two weekly flights for each carrier. Aviation technician would be sent India assist Embassy in consultation.

Regarding Article 11 (Arbitration). US prepared substitute wording used in more recently concluded agreements which provides disputes submitted for advisory report tribunal of three arbitrators one chosen by each party and the third by the two arbitrators so chosen. Full text being telegraphed.³

FYI. USG hopeful present over-all approach acceptable without GOI requirement written exchange. However, if you believe GOI will insist on written exchange, cable texts memo and letter Embtel 846⁴ immediately and Department will provide draft text. End FYI.

In clarification previous references Approach 4, GOI right to take unilateral action after capacity consultation would apply not only to consultation on increases but also on existing service.

FYI—This proposal considered highest levels Department and CAB. There is little chance that further concessions can be made to permit continuance US service after January 14. PAA and TWA informed. End FYI.

Dulles

1. This telegram was drafted by Ernst, Colclaser, and Bolster of the Aviation Policy Staff. Bolster signed it.
2. Dated Dec. 22, p. 1800.
3. The text of the arbitration article used by the United States in recently negotiated air agreements was transmitted to New Delhi in Department telegram 790, Dec. 23 (611.9194/12–2354).
4. Not printed; Chargé Kennedy informed the Department on Dec. 21 in this telegram that he had seen Pillai that day to discuss the status of the civil air agreement negotiations and the last U.S. proposal. Pillai asked for and was given a copy of the proposal previously given to Ram on Dec. 20 (611.9194/12–2154).