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   The precise extent of the railroad proposal as it affects aeronautics has not yet been disclosed. It may finally take the form of a proposal totally to abolish the Civil Aeronautics Authority and to transfer all its functions to the Interstate Commerce Commission. Or it may take the form of a proposal to transfer, from the Authority to the Commission, the power of rate regulation of air carriers. Or it may take the form,

[[included letter]]

Washington, D.C.

January 24, 1939


[Italics] Civil Aviation is clearly recognized as the backlog of national defense in the Civil Aeronautics Act which set up the effective machinery for a comprehensive national policy with respect to the air.
Underlying the statute is the principle that the country's welfare in time of peace and its safety in time of war rests upon [/Italics] the existence of a stabilized aircraft production - [Italics] an economically and technically sound air transportation system, both domestic and overseas [/Italics] - an adequate supply of well trained civilian pilots and ground personnel.
[Italics] This new national policy set up by the Congress views American aviation as a special problem requiring special treatment [/Italics]. Aviation is the only form of transportation which operates in a medium which knows no frontiers but touches alike all countries of the earth. One fact which stands out is that [Italics] hardly another civil activity of our people bears such a direct and intimate relation to the national security as does civil aviation [/Italics]. It supplies a reservoir of inestimable value to our military and naval forces in the form of men and machines, while at the same time it keeps an industry so geared that it can be instantly diverted to the production of fighting planes in the event of national emergency.
I hope the forthcoming National Aviation Forum will give serious through to the many phases which enter into aeronautics as a national problem.

(Italics ours.)


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