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arrangement eliminates competition among its participants, while increasing their combined strength in competition with our carriers. 

Recommendations: 
  1. Our aviation policies, as they affect our U.S.-flag carriers, must be given greater recognition at the highest levels of the Government. The ramifications of international air carrier operations, keenly recognized abroad, have been neglected by our Government to some degree. Government must recognize that, if it does not provide aggressive support to our international carriers, it may have to provide subsidy. 
  2. In this connection, a comprehensive study of our international aviation relations, commissioned by the President, is mandatory. Such a study should review our objectives in the field of international aviation in terms of an opportunity for profitability for our carriers and assurance of the availability of the best possible air service for the consumer at the lowest feasible rates. The analysis must include a review of all rights exchanged since World War II, the basis of the policies on which such grants were given and received, and probable trends. Specific agreements should be reanalyzed, particularly where the benefits given a foreign airline may have been dictated by political rather than economic considerations. Important related problems include restrictions, rate difficulties, pooling, capacity provisions and consultation, and the role of the International Air Transport Association in either advancing or inhibiting U.S. interests as well as the full development of international aviation. Such a study should also include a reevaluation of the present pattern of competition between U.S.-flag carriers engaged in international operation in the light of changes in technology and foreign competition since the bulk of the international routes were first awarded. 
  3. Consideration should be given to re-creating the post of an Assistant Secretary of State in charge solely of transport and communications problems - a method previously employed to handle these important and significant matters.
  4. Immediate action in certain critical areas is necessary without awaiting the completion of the study, wherever such action can be