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HELICOPTER AIR SERVICE PROGRAM     33

Mr. BOYD. That is correct, sir, and we understand there is no argument on that legal question. 

Senator LAUSCHE. You therefore suggest that this creates a rather anomalous situation, and to get the problem off your back, the law ought to be amended. 

Mr. BOYD. Yes, sir. That is to say, if the Congress does not want to continue supporting helicopter operations. 

Senator LAUSCHE. That is, even though it doesn't appropriate, that does not constitute an abrogation of the law and an abrogation of the Government's responsibility? 

Mr. BOYD. That is correct. 

Senator LAUSCHE. Now let's go to your paper for a minute. The Los Angeles service was certified in 1947, the Chicago service in 1948, the New York Service in 1952. Do you know whether at that time in 1947 there was an anticipation that these services would become self-sustaining in the course of a reasonable time in which subsidies were needed to provide the service? 

Mr. BOYD. I don't know. I will tell you, Senator, that those operations were certificated in the first instance purely and simply to carry mail. 

Senator LAUSCHE. But after they were certificated to carry passengers, would you assume it was anticipated that we were to subsidize forever, or that they would become self-sustaining after the public got acquainted with the conveniences and the service that were being rendered? 

Mr. BOYD. My assumption is that underlying the Board's authorization was a belief that they would become self-sustaining at some stage, depending on public acceptance and on technological advance. 

Senator LAUSCHE. Now, then, last year, the Congress said to the Board, "Do not come back and ask for any more moneys to subsidize this operation."

Mr. BOYD. Yes, sir. 

Senator LAUSCHE. This year you come up with the proposition that in 5 years they will be self-sustaining - these services. Do you mean to tell this committee that the notice that was served on you last year did not precipitate this judgment that the program should be phased out in 5 years? 

Mr. BOYD. No; that statement did not participate --

Senator LAUSCHE. Did it all induce you to come up with the proposition of phasing out the program in 5 years? 

Mr. BOYD. No, sir. We had been working on that prior to the report. We had a task force approximately 1 year ago.
 
Senator LAUSCHE. It is a mere coincidence that, last year, you were told to phase out, and that this year you come up with the public declaration that in 5 years these different services will be self-sustaining. Is it a coincidence or isn't it? 

Mr. BOYD. No; it is not a coincidence. It is as related to that specific language to which you adverted. However, I want to be perfectly frank with you, Senator. For the last 3 years we have been carrying a heavier and heavier load through the Appropriations Committee on this helicopter subsidy. We had become quite aware of at least the House committee's inflexibility in this area.