PROPOSAL FOR JOINT VENTURE BETWEEN AIR AMERICA COMPLEX AND ENTITIES IN SOUTH VIETNAM AND THAILAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01066A001100140008-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: November 15, 2004
• Sequence Number: 8
• Publication Date: September 20, 1973
• Content Type: MF

DD/WIS 73-3703
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MEMORANDUM FOR: Director of Central Intelligence
FROM : Deputy Director for Management and Servicc,s
SUBJECT : Proposal for Joint Venture Between Air America
Complex and Entities in South Vietnam and
Thailand
1. Action Requested: It is requested that you approve the
recommendations contained in paragraph 4 below.
2. Basic Data orBackgound: At the Executive Committee
meeting of the Air America complex on 11 September discussed
proposals by South Vietnam and Thai officials which would lead to joint
ventures between the Air America complex and entities in South Vietnam
and Thailand.
read to the Committee a letter from Vietnamese
officials which indicated that they were most interested in a joint venture
relationship with Air America indicating that a joint venture with NTIIC,
Inc. had not been going well. In essence they raised the possibility of a
joint venture such as previously suggested in Vung Tau and threatened to
charge the company for the use of Vietnamese air space unless it proceeded
with such a joint venture.
then noted that he had received a similar request
for a joint venture in Thailand from Thai Airways. At the request of the
Director of Thai Airways a meeting was held with an Air America
representative at which time the Director of Thai Airways proposed a
joint venture. He noted that Thai Airways was not happy with the maintenance
service being performed for them by Thai Am and its American part:.ner and
he suggested that Air America sub-contract with Thai Am to furnish
maintenance. He .requested an exploratory meeting with the Director of Air
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America to discuss this matter. Those knowledgeable of the Thai
Government and its operations agreed 1:1 tat this approach was an approved
approach by the Thai. Government and should be considered as an official
one. noted that while no commitments have been made in
either the case of the Vietnamese or the Thai proposal., it is something
that must be faced in the near future.
Concerning joint ventures it should be noted that all bidders
had indicated their interest in such a joint venture arrangement in the
local government. From a practical standpoint, if the company is to
survive under private ownership, such joint ventures will be neces.,a.ry.
The Managing Director of Air America feels that he should proceed with
negotiations on joint ventures and that this would be beneficial to tb:c LT. S.
Government and in connection wit:i the sale of the company to one of the
bidders.
3. Staff. Position:
4. Recommendation: In view of the above the following two
recommendations are made:
(a) that the bidders be formally advised in writing of
the two proposals for joint venture in South Vietnam and Tha l.aiid.
It would be explained that these proposals were initiated by the
Vietnamese and the Thais and are being considered by the company
(b) that you approve preliminary negotiations with bot i
the South Vietnamese and the Thais with the view toward some
sort of joint venture operation in these two countries. This
would represent authorization for negotiation only and the
company would not enter into any agreement without the approval.
of the specific agreement by you.
13ROWNMAN
Deputy Director
for.
Management and Services
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Ste, ~ ~ r~, ,..~ .
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 Approved For ReI se 2004/12/01 : CIA-RDP80M0l066AO001100140008-9
Subject: Proposal for Joint Venture Between Air America Complex and
Entities in South Vietnam and Thailand
CONCURRENCE:
SEP 1:,73
Chief, East Asi Dzvision
General. Counsel
F,
ssociatc Deputy Director for Operations
DISAPPROVED:
Distribution:
O Addressee (for return to SA-?DD/M&S)
I DDCI
1 ER
1 - C/EA Division
1 - General Counsel
1 -ADD/O
1 - DD/M&S Subject
1 -? DD/M&S Chrono
1. - SAMDD/M&S Chrono
2 O CT 1"1'73
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