Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Original Classification: 
Document Page Count: 
Document Creation Date: 
December 27, 2016
Document Release Date: 
April 24, 2013
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Case Number: 
Publication Date: 
November 16, 1948
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PDF icon CIA-RDP78-01617A005000010038-4.pdf159.23 KB
::~ ..~, ~ Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 ? ~ SEC&C~ "~ OFFICE OF REPORTS ANA ESTItdATES TRANSPORTATIOli GROUP Czechoslovak civil air operations to the Near East may soon be cra:tailed or even blocked entirely., Lebanon and Egypt are threatening to cancel landing rights now enjoyed by the Czoohoslovak national air- line (CSA), unless Czechoslovakia suspends its flights to Israel< Iraq has alrendy terminated such rights For CSA, and Greece may even- tually prohibit all CSA flights through Athens?to the Near East, (Item No, 1, C) A four-year plan ?or the development of Italian civil nviation, -with direct financial assistence from ECA, is being aonaidored by the Italiatt Government, The program includes projects for improving Italian airport facilities, establishing schools for training air crews, and rehabilitating the Italian aviation industry; it would seek ECA assistance totaling 160 billion lfr? ($280 million), (Item No. 2, C) -- - The conclusion of a liberal civil air agreement between Argentina ~.""-hand the Netherlands does not indicate a retreat by Argentina from its restrictive aviation policy, Argentina has consistently attempted to limit the aommercinl rights of foreign airlines in its-territory and will continue this policy except in specific instances where it is to her advantage to disregard it, (Item No, 3, C) Despite recent discussions, the Chinese cancellation of the Sino- Soviet air agreement will stand unless now negotiations produce a solution by September 1949, (Item No. 4, C) Document No.d~D RTO CHAATGE in Class. ,~ ?-./_ ~I lass: CE:'_?;,~.i:D~TO: ? ~ TS S Di;,, ;ri:auo 4 A..pr 77 Auth: DDA R-';7 ' / .-.?. 17 1,63 Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 CIA-RDP78-01617A005000010038-4 ----~_ :_ ~; Declassified in Part -Sanitized Copy Approved for Release 2013/04/24 :CIA-RDP78-01617A005000010038-4 Despite the submiesioa of s formal note of protest by ~e Austrian Governmont to Soviet authorities; and an implied threat to plebe the matter before the Allied Council unless the Soviet claim ie greatly reduced, the Austrian rolling stools issue remains unsolved. (Item No. b, H) ?J \.i Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 ?~ SEAT `'' 1. Czechoslovak civil air operations to the Near East may soon bo curtailed or even blocked entirely. Probably as e'result of Czecho- slovakia~s active-participation iri the air supply of Israeli fighting forces, Iraq has oanaelled tkie'temporary landing rights granted the Czechoslovak national airline at Baghdad. Lebanon has informed the Czechoslovak Government that the agreement permitting CSA~a flights to Beirut Grill be denounced unless Czechoslovak aircraft discontinue their prosant flights to Israel. Egypt is also considering cancellation of the provisional authorization permitting CSA~s flights to Cairo if CSA continuos to serve Israel. Should CSA lose its landing rights at Beirut and Cairo, its operations to the Noar East would be restricted to the services From Athena to Istanbul and IIaifa. Even these schedules will have to be cancelled if Greece carries out its expressed intention (See TG Weakly Summary X38) to restrict progressively and eventually rD O~all CSA flights through Athens to points in the Near East. 2. Afear plan for the develo went of Italian civil aviation, with irec inancis~ aasi~ s~anoo From A, as on prepare y Italian Ministry o? Defense-Aeronautics and is being considered by the Italian Government. The program, covering the period 1948-1952, en- aompasses four principal projects: (a) aonatruction of a now inter- national airport near Roae; (b) reconstruction of #re Italian airport network; (o) establishment of schools for training Italian air crones end (d) rehabilitation of the Italian aviation industry to include facilities for production of large long-range aircraft. Tne proposed program would seek ECA assistance totaling approximately 160 billion lire ($280 million). The existence of modern air facilities in Italy would not only encourage the development o? Italian civil aviation, thereby contributing trnrard Italian economic recovery, but would bo of strategic value to the US and Western Povrera. ECA might not accept the Italian program in its entirety. Tho argument would bo raised that Italy~s aircraft industry cannot produce . long-range four-engine transports in competition with US and other foreign producers unless subsidized heavily. Furthermore, EGA may take Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 `~' ~ SE~E'~ . the position that some of the projects envisaged, such ea the inter. national airport, could be financed more appropriately through the 'International Civil Aviation Organization, of which Italy is an native 3. The conclusion of a liberal civil air 'a reomont between Argentina and the Netherlands does not in icate a retreat y Argentias from its . restrictive aviation policy. Argentina has cousistontly attempted to limit the commercial rigk~ts of Foreign airlines in its territory and Trill continuo this polioy except in spebific instances whore it ie to her advantage to disregard it. Tho agreement with the Dutoh, whiah eras signed in Buenos Aires on 29 October, contains none of the restrictions.proposed by the_Argentines during intermittent aegotiationa over the past two years. (Sines the Netherlands was unwilling to accapt restrictions, such as an arbitrary division of traffic, the Dutch airline, SiLS, was forced to terminate in }dontevideo the South Atlantic route which it inaugurated late in 1946,) RIM is now granted direct and unrestricted acoesa to firenos'Airea and will bo authorized to eatend its services to Santiago, Chile, after an Argentine carrier has inaugurated service to Amsterdam. Argentina hoe concluded aia non-restrictive agreements with ~ropean oountrias during 1948. These apparent ooncesefo~ to amore .liberal civil aviation policy, however, do not aotually indicate adoption of such a policy by Argentina, but represent a compromise exacted by the hliropeaa countries as 'the oriee of ouerating rights for Argentine airline services 4. Chinese delegate Liu, Foreign Affairs Commissioner for Sinkiang Province, has stated on his return to Tihwa that no understanding was reached at Alma Ata between Soviet and Chinese representatives regarding the Sino-Soviet air agreement which covers the "joint" air operations in Sinkiang. Liu asserts that he lacked authority to discuss terms with the Soviet delegates and that the USSR desires to continue the conversa- tions ih Moaao~. He emphasizes that the Chinese cancellation of the Sine-Soviet air agreement will-stand unless now negotiations produce s ~ i solution by September 1949. An evaluation of Liu~s version, which is t open to doubt, appears somewhat academic, booause the political prospects ~ of the Nationalist Government suggest that the USSR will probably be able to continue air gaeratione_~n'Sinlciang, regardless of the status of the air agreement. ~ STAT, Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 -~. S.7 ~. .rp Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 SURFACE TRANSPORTATION' 5. The Austrian Gooernment has submitted a formal note of retest to Soviet authorities in regard the ovie requisition of Austrian rolling stock'(See TG V1`eekly No. 36). Tho note carries an implied threat to place the matter before the Allisd Council unless the USSR greatly reduces its claims, (Austria requests a reduction of about 5,000 care in the Soviet d~nand for 540 locomotives end 5,575 rail- '. Tray oars.) Deapito the Austrian note, the USSR has directed that, psLding reooneidoration, the deliveries proceed as requested. ti9hilo there are no indications that ~e bSSR will relinquish any of its claim, it may have deliberately inflated the original figures. In this case, it will eventually announoo its reductions with a show of generosity. Oa the other hand, instead of offering a reduction, the USSR may offer to sell the rolling stools back to Austria for hard cur- rency. At the bast, however, the Austrian economy will be soverly Declassified in Part -Sanitized Copy Approved for Release 2013/04/24: CIA-RDP78-01617A005000010038-4 ~.. Y l