TOP SECRET expected of Such aircraft. Accordingly, Mr. Cutler said he would ask the Joint Chiefs of Staff and the Central Intelligence Agency to get together and reach agreement on the estimated availability of civilian aircraft and, accordingly, on a revision of paragraphs 5 and 6. Mr. Cutler also noted the proposal of the Joint Chiefs for an addition to subparazraph 22-b and for a new paracraph to follow These nev varagr2phs would stress the neea the present varazrsaph 30. for the United States and its allies to develop competitive aviation equipment on programs desipned to strengthen the Free World eviation position and to enhance its influence in the underdeveloped areas of the Near East, Africa, Asia and Latin America. There followed a discussion of the meaning of the Joint Chiefs' proposed additional varacreph and whether their proposal that the United States develop competitive aviation equipment for use in the underdeveloped areas was intended to imply that the airlines should receive a subsidy from the U. 5. Government in order to develep this aviation equinment, including aircraft. General Teylor, as Act- ing Chairman of the Joint Chiefs of Staff, replied that the Joint Chiefs' suosestion was not intended to imply that the Governnent should supply American airlines or the manufacturers of American aircraft with subsidies. Secretary Dulles was not wholly satisfied by General Taylor's reply, and asked more specifically whether the Joint Chiefs' proposal was @ mere pious expression, or were the Joint Chiefs proposing that some concrete course of action be followed in order to develop air- craft and aviation equipment suitable for use in underdeveloped countries but from which the U. 5. airlines could not expect to derive ’ financial profit. Secretary Rothschild said he believed that the course of action proposed by the Joint Chiefs should be directed at the U. S. manufacturers of aircraft and aviation equipment rather than at U. 8S. airlines. Mr. Durfee pointed out that there was no legislation or policy in existence under which we could encourage U. 5. airlines to carry on operations in the underdeveloped areas of the world. We overations if they cannot expect an adequate return on their investment. In other words, they would require assurance, if they go into these underdeveloped areas, that they would have an adeauate return on their investment. We are not in a position to give them any as- surance of a subsidy. Mr. Cutler wondered whether there were not other Free World airlines--such as the KIM, for example--which were actually anxious to operate in such underdeveloved areas as the Middle East. Mr. Dur- aan lt jee -2 a fee replied that perhaps, if assured of the support of their governments, the airlines of some of our allies would be willing to operate oe se’ +e ete. . REPRODUCED AT THE DWIGHT, D. BISBRHOWER LIBRARY * could not, accordingly, expect the U. 5S. airlines to engage in such °" < mOP SESRET Valine edencae ting SAET oe ne