TOP SETRET in the underdeveloped ereas of the Free World; but he still insisted on malting clear that under existing Jaw and policy we could give no assurance of governmental financial support to our U. &. airlines. The President called on the members of the Council to be realistic in dealing with this problem. We are witnessing, said the President, a great expansion of the Soviet and setellite sirlines throuzh the underdeveloped areas--indeed, even to such remote areas es Yemen. Our problem was to determine how the Free World nations conld compete with the capability of a dictatorial sovernment like that of tne Soviet Union when it made up its mind to ellocate re- sources to achieve a specific objective such as this. We have got to find other weys by which the nations of the Free World can work ont & program for expanding sir operations into the underdeveloped areas to compete with the Communists. Perhaps we should develop a program analogous to our techrical assistance program. In anv event, we should do whatever we are obliced to do in order to mset Sovist competition, which we regard as significent. SERB ee ee ee ee ee a a a ce RRR ee ee . ee ee eet ete www ea S ee ee eee. l we Ld a C a a S ae ee Pe ee Bt tee eee ee ee ere RR eh ee ee ree ee ete a . . ‘ a eel a ee eee ee e ba DS ee se Teeter ete tee ee ERE ORR Oe ee ee ee eee ‘ * a0 . . . . . Secretary Rothschild warned that the area of civil aviation hed always been one in which the United States was pre-eminent. Our eircraf: companies carry approximately 80% of the world's eir passeng2rs, and ve wish to maintain this pre-eminence. Secretary Anderson referred to the studies celled for in parasravh 32 by the Interdeparcamental Committee on Internal Security (ICIS) and the Interdepartmental Intelligence Conference (TIC) for oe mae United States entered into any agreement for the entry of Commnist bloc eirlines into the United States. Secretary Anderson wented to be sure that such study was broadly based and included all ports of entry. Asked if he wished to comment on the internal security as- pects of the policy proposed in NS? 5726, Mr. J. Edcer Roover expressed the view that it was imperative that the security safe~uards develoned . REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY » developing the necessary ‘nternal security safecuards before the by the ICTS and the IIC be specifically implemented. The doviets were certain to use aircraft coming into the United States in order to transport Soviet intelligence arents. -2- iitiee n mien ~ es ay Nae, nemseeasel ak ao eine TIE te . bee Ml nee iene nn TOP SECRET nk