INTERNATIONAL CIVIL AVIATION                 1465

which we feel is fair and reasonable to both sides. In the draft agree-
ment the United States accepts the British position on regulation of
rates and the British accept our position on non-regulation of fre-
quencies and, in general, on the Fifth Freedom. The President and I
are prepared to accept the Agreement and are authorizing the Chair-
man, United States Delegation, to sign the Agreement in Bermuda.
  We feel that the signature of this Agreement as soon as possible
would not only be desirable as a fair and reasonable settlement of the
long standing civil aviation controversy, but would contribute mate-
rially toward a favorable reception in Congress to the loan agreement.
The President has sent his message to Congress on the loan.27 We
earnestly hope that the Aviation Agreement can be signed in
Bermuda as soon as possible.
  Acheson had a talk yesterday with Halifax along the foregoing
lines. I believe it would be useful for you to talk with the Foreign
Minister 28 and perhaps Attlee,29 in your discretion, along the same
lines. Lord Keynes 30 has, in the past, been helpful in matters of this
kind with the Chancellor of the Exchequer, and you may find it
advantageous to talk with him.-1
                                                              BYRNES


841.796/2-146: Telegram
The Chairman of the United States Delegation (Baker) to the Secre-
                            tary of State

SECRET    US URGENT                            HAMILTON [undated].
                             [Received February 1, 1946-6: 28 p. m.]
  For Clayton. Colonel Robert Tate and Mr. William        Fleming32
leaving Bermuda six p. m. by army plane today with draft heads

  27 For text of President Truman's message to Congress, released to the
press
January 30, 1946, transmitting the United States-United Kingdom Financial
Agreement, see Department of State Bulletin, February 10, 1946, p. 183. For
text
-of Agreement, see Bulletin of December 9, 1945, p. 907. For pertinent documenta-
tion. see Foreign Relations, 1945, vol. vi, pp. 1 ff.
  ' Ernest Bevin.
  29 Clement R. Attlee, British Prime Minister.
  3 John Maynard Keynes, British Economist and financial adviser to the British
Government.
31 In telegram 1303, February 2, 6 p. mi., the Ambassador replied: "In
answer
to your 1069, January 31, I have urged Mr. Bevin to promptly authorize his
delegation in Bermuda to sign the draft agreement arrived at in Bermuda.
This
question has been considered a Cabinet matter and a decision will be made
at
its meeting Monday afternoon [Feb. 4]. I am carrying out the suggestions
con-
tained in your message." (841.796/2-246)
  32 Colonel Tate is not listed in the Delegation roster; ir. Fleming was
a rep-
resentative of the Navy Department on the staff of Delegation advisers.