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SECRET
21
A lack of modern machine tools, technical
required in Argentina for the effective pur-
and scientific knowledge, and skilled labor has
chase of foreign aircraft.
impeded Argentine aircraft manufacturing
3.
efforts to date. The principal emphasis of the
International Civil Aviation Policy.
research and construction program has been
a. Air Traffic Policy and Air Agreements.
placed on military aircraft development, which
In order to minimize foreign competition
absorbs the major portion of the limited avail-
with its international carrier, FAMA, Argen-
able resources. A number of aviation scien-
tina has not only consistently resisted grant-
tists from several European countries, for ex-
ing Fifth Freedom traffic rights, but has also
ample, are working almost exclusively on mili-
attempted to protect FAMA by seeking air
tary aircraft projects. Moreover, the Argen-
agreements on the basis of a predetermined
tine Government has made poor use of the
division of traffic. Some Argentine agree-
many skilled Italian workers who have re-
ments have gained advantages for its carrier
cently immigrated.
in this respect, but, in general, Argentina has
While many Argentine industrial plants con-
been forced to accede to more liberal agree-
tribute indirectly to aircraft manufacture,
ments granting full traffic rights in order to
only three or four are engaged in the final
secure satisfactory reciprocal rights.
production of aircraft. Of these, only two are
Under its "regional (or international) cabo-
private organizations and their limited output
tage" theory (decreed 12 September 1947, al-
is devoted to small aircraft. These concerns
though pronounced and promoted earlier),
are: Petrolini Hermanes, S.A., which has built
Argentina attempted to create and become the
a number of 150-hp. tandem trainers, and
leader of a regional bloc including Chile, Uru-
IMPA (Industria Metalurgica Plastica Argen-
guay, Paraguay, Peru, and Bolivia, in which
tina), which is at present doing assembly work
all mail and passenger traffic between points
and manufacture of small parts. A twin-
within the region would be reserved to airlines
engine five-passenger transport is reportedly
of the countries comprising the bloc. How-
under construction by the latter. Argentina's
ever, Argentine efforts to create such a restric-
productive capacity, therefore, is centered al-
tive bloc within the neighboring area were
most entirely in the projects of the Aerotech-
effectively frustrated by the defection of Chile,
nical Institute at Cordoba. This government-
which concluded a full Five Freedoms agree-
operated enterprise was originally established
ment with the US in May 1947, and failed to
principally for research and development, but
support Argentine attempts to secure inter-
the lack of government encouragement and
national recognition of the regional bloc. Ar-
assistance to private concerns has resulted in
gentina itself was forced to modify its position
Cordoba's assumption of virtually the entire
in negotiations with the US and also concluded
construction burden. Its projects are now al-
a
Fifth Freedom agreement in May 1947.
most exclusively military, although its future
This agreement, however, has never been fully
program includes construction of a twin-
effective as a result of Argentine intransigence
engine ten-passenger transport and a proto-
with respect to conclusion of the requisite
route annex to the agreement. In view of
type four-engine transport. Argentina, how-
FAMA's present requirement for US landing
ever, does not yet possess adequate equipment
rights, Argentine obstructionism may soon be
to make the necessary high-stress material and
withdrawn.
structural tests for the production of trans-
Argentina has concluded restrictive type bi-
port aircraft comparable to those now being
lateral agreements with the UK (May 1946),
produced by the US and UK. Although Cor-
Portugal and Spain. Although the agree-
doba has been represented by the Argentine
ments with France and Italy may also be sus-
Government as the nucleus of a great national
ceptible of restrictive interpretation, other Ar-
aircraft industry, it is possible that its prin-
gentine agreements, including those with the
cipal mission for some time to come will ac-
Netherlands and the Scandinavian countries,
tually be to develop the technical knowledge
are of a liberal nature generally similar to that
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"ocrText": "SECRET\n21\nA lack of modern machine tools, technical\nrequired in Argentina for the effective pur-\nand scientific knowledge, and skilled labor has\nchase of foreign aircraft.\nimpeded Argentine aircraft manufacturing\n3.\nefforts to date. The principal emphasis of the\nInternational Civil Aviation Policy.\nresearch and construction program has been\na. Air Traffic Policy and Air Agreements.\nplaced on military aircraft development, which\nIn order to minimize foreign competition\nabsorbs the major portion of the limited avail-\nwith its international carrier, FAMA, Argen-\nable resources. A number of aviation scien-\ntina has not only consistently resisted grant-\ntists from several European countries, for ex-\ning Fifth Freedom traffic rights, but has also\nample, are working almost exclusively on mili-\nattempted to protect FAMA by seeking air\ntary aircraft projects. Moreover, the Argen-\nagreements on the basis of a predetermined\ntine Government has made poor use of the\ndivision of traffic. Some Argentine agree-\nmany skilled Italian workers who have re-\nments have gained advantages for its carrier\ncently immigrated.\nin this respect, but, in general, Argentina has\nWhile many Argentine industrial plants con-\nbeen forced to accede to more liberal agree-\ntribute indirectly to aircraft manufacture,\nments granting full traffic rights in order to\nonly three or four are engaged in the final\nsecure satisfactory reciprocal rights.\nproduction of aircraft. Of these, only two are\nUnder its \"regional (or international) cabo-\nprivate organizations and their limited output\ntage\" theory (decreed 12 September 1947, al-\nis devoted to small aircraft. These concerns\nthough pronounced and promoted earlier),\nare: Petrolini Hermanes, S.A., which has built\nArgentina attempted to create and become the\na number of 150-hp. tandem trainers, and\nleader of a regional bloc including Chile, Uru-\nIMPA (Industria Metalurgica Plastica Argen-\nguay, Paraguay, Peru, and Bolivia, in which\ntina), which is at present doing assembly work\nall mail and passenger traffic between points\nand manufacture of small parts. A twin-\nwithin the region would be reserved to airlines\nengine five-passenger transport is reportedly\nof the countries comprising the bloc. How-\nunder construction by the latter. Argentina's\never, Argentine efforts to create such a restric-\nproductive capacity, therefore, is centered al-\ntive bloc within the neighboring area were\nmost entirely in the projects of the Aerotech-\neffectively frustrated by the defection of Chile,\nnical Institute at Cordoba. This government-\nwhich concluded a full Five Freedoms agree-\noperated enterprise was originally established\nment with the US in May 1947, and failed to\nprincipally for research and development, but\nsupport Argentine attempts to secure inter-\nthe lack of government encouragement and\nnational recognition of the regional bloc. Ar-\nassistance to private concerns has resulted in\ngentina itself was forced to modify its position\nCordoba's assumption of virtually the entire\nin negotiations with the US and also concluded\nconstruction burden. Its projects are now al-\na\nFifth Freedom agreement in May 1947.\nmost exclusively military, although its future\nThis agreement, however, has never been fully\nprogram includes construction of a twin-\neffective as a result of Argentine intransigence\nengine ten-passenger transport and a proto-\nwith respect to conclusion of the requisite\nroute annex to the agreement. In view of\ntype four-engine transport. Argentina, how-\nFAMA's present requirement for US landing\never, does not yet possess adequate equipment\nrights, Argentine obstructionism may soon be\nto make the necessary high-stress material and\nwithdrawn.\nstructural tests for the production of trans-\nArgentina has concluded restrictive type bi-\nport aircraft comparable to those now being\nlateral agreements with the UK (May 1946),\nproduced by the US and UK. Although Cor-\nPortugal and Spain. Although the agree-\ndoba has been represented by the Argentine\nments with France and Italy may also be sus-\nGovernment as the nucleus of a great national\nceptible of restrictive interpretation, other Ar-\naircraft industry, it is possible that its prin-\ngentine agreements, including those with the\ncipal mission for some time to come will ac-\nNetherlands and the Scandinavian countries,\ntually be to develop the technical knowledge\nare of a liberal nature generally similar to that"
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