Created: 1/1/1968

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Mandatory Review.Oocuoient

MEMORANDUM FOR: Mr. Bromley K. Smith Executive Secretary National Security Council The white House

US Civil Air Negotiations

with Czechoslovakia

US negotiations with Czechoslovakia over the termsew civil air agreement were initiated in Prague last April and are scheduled for resumption in Washington onanuary. Pan American Airways will seek the regularization of its service between Prague and New York, which has operatedemporary Czech permit since

In return, Czechoslovakia will attempt toomparable route, possibly with ongoing rights to Latin America. An air agreement with the US would increase Czechoslovak prestige in civil aviation, assist the Czech efforts to negotiate agreements with Latin American countries, and provide the US with another bridge to Eastern Europe.

7 (Subject Report)





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Forthcoming US Civil Air Negotiations With Czechoslovakia

No. 13


8 January 19

CENTRAL INTELLIGENCE AGENCY Directorate af Intelligence8


Forthcoming US Civil Air Negotiations with Czechoslovakia "


Forthcoming negotiations in Washinaton between the United States and Czechoslovakia mavew civil air agreement that would replace the inoperative agreement concluded between"the United States and the Benes government ew agreement probably would provide the Czechoslovak State Airline (CSA)oute between Prague and New York and regularize Pan American Airways (PAA) service to Prague, which has operated since5emporary permit from CSA has never operated scheduled service to the United States.

CSA probably would notrague - New York service untilnd would use the new oviet long-range jet on the route.ervice would not include beyond rights to Cuba. An air agreecie.it with the United States would enhance Czechoslovakia's prestige in the civil air sphere, give some leverage to the Czechs in their effort to negotiate agreements with other Latin American countries, and provide the United States with another bridge to Eastern Europe.

Hcte: noraidur. -jas produced by CIA. It was prepared by the Office of Economic Research and was coordinated with the Office of Current Intelligence.

Forthcoming US Clvfl Airh Czechoslovakia

Czech aviation delegation headedHurin, President of the Board ofof the Czechoslovak Ministry ofscheduled to arrive in Washingtonor resumption of bilateral civilwith US Government and Pan(PAA) officials commencinganuary.

The meeting is expected to lasteek to ten days, aftor which the delegation tentatively plans to fly to Ottawa for discussions with the Canadian Ministry of Transport.

civil air agreement concludedUnited States and the Benes government inis technically still in force. PAAair service between New York and Pragueagreement, but service was suspendedCommunist takeover of Czechoslovakia inthe agreement has since been inoperative.

InAA resumed service between New York and Pragueemporary permit (outside tlie provisions of6 agreement) issued by the Government of Czechoslovakia. The Czechoslovak State Airline as never operated scheduled air service to the United States.

Czechs have indicated to USvarious times5 that theyew air agreement with the Formal negotiations began int which time the Czechs asked for one to New York and the other tovia intermediate points in Europeand with beyond rights to Mexico. were recessed after considerableon conditions under which PAAbusiness in Czechoslovakia andremit curroncy. There was also someon arbitration procedures andnegotiations were resumed informallyand PAA inut thewere not resolved.

* CSAtate-ouned civil aviation enterprise exclusively authorized ta provide scheduled and non-scheduled air transportation. It is headedeneral manager who is responsible to the Ministry of Transportation.


Czechoslovak Ministryurried attempt toingreed to the

8 date. The new Czech initiative suggests that CSA wants toew York service9 and may be ready toon the disputed points.

International Operations of Czechoslovak State Airline

the largest Easternree World countries, the USSR, allEastern European Communist countries,(sec the map). CSA's international airdates back to before world War II. war the Benes government had ambitiousthe expansion of air services, but aftertakeover8 air service wasexpansion drive was resumed in the late routes were added to Asia, Africa, and Cuba. CSA's volume of traffic on allincluding Chose in Eastern Europe, was

illion passenger kilometers, more than three times the level The development of routes into distant areas was an aspect ofgrowing involvement in the less developed countries and at least initially hadolitical purpose. Many of these routes were unprofitable. In recent years, CSA's emphasis has been on the consolidation of its existing route network to improve the efficiency of air operations. All cities added to CSA's service since 5 -- for example, Freetown, Tunis, Istanbul, Teheran, Dubai, Karachi, and Singaporehave been incorporated as intermediate points or extensions to existing routes. Routes to the Free World extended0 unduplicated miles as of

occupies anair position in Eastern Europe becausecentral location and its sophisticationair matters. Itongstandingthe International Civil Aviation and the International Air(IATA) and has generally basedair policy or. the internationalby ICAO.

7. CSAavorable reputation as an international carrier, but with the exception of eight's purchasedts fleet verges on obsolescence. The CSA fleet included the following aircraft as of

assengcr, medium-range jet

assenger, short- to medium-range turbofan

assenger, long-rangeeight acquired7

assenger, short-range

lack of sufficient modern long-range aircraft has impeded CSA's efforts to expand operations to East Africa, Latin America, Oceania, and Japan. Martin Murin, the head of the Czech delegation, stated recently that CSA's first priority is the purchase of intercontinental planes. Czechoslovakia has always bought Soviet aircraft because of close trade ties with the USSR and favorable Soviet terms. CSA officials, after negotiations with Western6 and7 concerning price and delivery dates, have decided to continue purchases from the USSR. They now anticipate acquisition of anong-range jet innd subsequent purchases of medium-range twin-turbofanss well as later purchases of triple-turbofar.s for medium- and long-haul routes. Presumably, theould be the aircraft used on the Prague -New Vork route.

hen it lost twos in major accidents, there has been only one crash involving substantial fatalities. hortly after CSA had replaced the turboprop Britannia with then the route to Cuba, one of thes crashed on takeoff from Gander, andf theassengers were killed.


ImplicationsSA Service Between New York and Prague

10. The establishment by CSArague -New York route would gain prestige forandever for obtaining additional air agreements, especially with Latin American countries. CSA has long wanted to expand its service to Latin America by extending either its present weekly Prague-Havana service or its West African service (Bamako,Conakry, and Freetown). As early2 the Czechsesire to extend CSA's Cuban route to Mexico, and recently they had discussions with Mexico concerning an air agreement. In their negotiations with US officials inhey requested onward rights to Mexico on their proposed flights to New York and Chicago. The decisions of Latin American countries concerning air agreements with Czechoslovakia will be based principally on their own self interest, but an air agreement with the United States would provide Czechoslovakia with an added sales pitch. outo from Prague to New York also would provide Czechoslovakia with an opportunity to earn hard currency and would be another demonstration of the willingness of the United States and Czechoslovakia to engage in limited cooperation.

11. If the Czechs were to obtain the right toervice to New York, they would not receive beyond rights to Cuba, even thoughoute would be much sore efficient than the present one through Shannon and Gander. The Czechs are keenly aware of US sensitivity on this point. They have not raised the question innegotiations, obviously knowing that any attempt to gain beyond rights to Havana would scuttle their hopes for an agreement with the United States.

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