Now, the arrangement made since the war has been on for new services where these new airfields have been built on routes to the war zones, have been made, I believe, by our military services. They have not been made through the civilian agencies of the Government. The CHAIRMAN. In the arrangements made prior to the war, I understand that both the State Department and the interested carriers took part in the negotiations; that is, in some instances, the State Department was more active than in others and in many cases provisions were made through negotiations by the State Department with the foreign governments. Mr. STANTON. Yes, sir; the State Department has been a party in all of those negotiations for reciprocal rights for operation of commercial air services. The CHAIRMAN. And as to whether or not in the future, as in the past, we have air transportation and commerce with foreign nations, one of the vitally important things in connection with the negotiations is the question of having a favorable balance sheet, is it not? Mr. STANTON. I presume so. The CHAIRMAN. In other words, the air carriers have got to have compensation that will enable them to operate or else we do not have the service. Mr. STANTON. I believe that that is right, sir. Of course, that is not in the field of the Civil Aeronautics Administration. The CHAIRMAN. No. Mr. STANTON. To determine the balance sheet situation. The CHAIRMAN. Under the authority that now exists, the Board can fix a rate of compensation high enough to maintain the services. Mr. STANTON. That is my understanding, sir. The CHAIRMAN. And so at the present time the Government has that authority through the Civil Aeronautics Act, to guarantee the services. Mr. STANTON. Yes, sir. Mr. HALL. Mr. Chairman. The CHAIRMAN. Mr. HALL. Mr. HALL. Mrs. Luce, in her talk yesterday, threw out this thought that Great Britain today was already planning for world wide aviation control after the war, and bases were being built, and so on in accordance with that thought. What body, if any, in this country is taking care of that situation. for us? Or, is anyone giving any thought to that situation? Mr. STANTON. Yes, sir; a number of agencies are giving thought to that situation. The matter of extending air transportation to new points, whether it be within this country or outside, is a matter that comes under the general supervision and jurisdiction of the Civil Aeronautics Board and I believe that any extensions outside of the country, to foreign countries, involves the State Department. Mr. HALL. Well, do you know of any actual situation where something has been done by the Board to protect our interests in that regard? Mr. STANTON. No, sir. I shall have to refer you to the Board for that. I am sure they have been active, but I do not know the details. 83838-43- -25 Mr. HALL. Do you know whether or not there have been any plans made with respect to bases for our air travel in different parts of the world after the war? . Mr. STANTON. I cannot speak for the Board; no, sir. Mr. HALL. Who could give that information? Mr. STANTON. The Chairman of the Civil Aeronautics Board. Mr. STANTON. Yes. Mr. HALL. That is all. I have explained Mr. HOLMES. Mr. Chairman. The CHAIRMAN. Mr. Holmes. Mr. HOLMES. May I add there while we are dealing with that subject, that we have heard a great deal about this, read a great deal in the newspapers, and heard it from speeches, and so forth, and reference has been made to the speech made yesterday by Mrs. Luce. This same subject was very much in evidence in 1938 when we enacted the original act or revised civil aeronautics bill, and in looking the hearings over, I find quite a little discussion on that subject and, while the average person does not realize the tremendous amount involved, or the number of things involved, I believe under our present law the President has the power to approve a certificate. I will just read a part of this from page 147 of the hearings. When Mr. Hester was before our committee he made this observation: Take, for instance, this situation with reference to the provision that the President shall have authority to approve certificates of public convenience and necessity for American flag airplanes flying abroad. The Army, the Navy, and the State Department, are deeply interested in the foreign operation of our air lines. If it were not for this provision the Army and Navy would have no opportunity to come into the picture at all nor would the State Department. Now, where the President has control he can refer the matter to the State, War, and Navy Departments before he reaches a decision. You can see the necessity of the President, from an international defense standpoint, having an opportunity to review the question as to whether or not a certificate of convenience and necessity shall be issued to an American flag air line flying through our territories for the reason that they carry foreign passengers. We do not want foreign passengers flying over our fortifications in our territories so that they can observe them. In flying to foreign countries, from a national defense and international relations standpoint, it is very important that the President, the War Department, and the Navy Department, as well as the State Department have something to say about where our air bases will be established in foreign countries. And he makes this further reference: Here is a good illustration of what I have in mind. Here is an item from the Washington News, March 10, 1938. The headlines say: BASE IN HAWAII DENIED FOREIGN AIR LINES "The United States has rejected, for reasons of national defense, the application of British and Dutch aviation interests for permission to establish commercial air bases in Hawaii, it was learned today. "The major reason for refusal was this Government's unwillingness to expose its Hawaiian defenses to view from foreign-flag air lines over which we would have little control." What I mean is that the problem is so complicated, in a sense, that we have these various steps to go through before we can establish relations with foreign countries, and it is not as easy as people might think. I do think there is a fear in this country, however, that we are not alive to the situation. Mr. HALL. May I interpose there that what I have in my mind is, we hear rumblings that other countries are preparing for this world air commerce after the war, and I was just wondering whether or not our interests are being taken care of by the proper departments of our Government, because it is going to be the mode of travel and commerce after the war-there is no question about that—and I hope we are not asleep at this time to those possibilities. Mr. HOLMES. I was just going to follow that through with this request: We know, of course, that all of our interests in all of these foreign countries are supposed to be looked after. The Department of Commerce have attachés that are familiar with the situation, and the State Department also has men in these countries. Now, there are other groups, such as the B. E. W.-the Bureau of Economic Welfare that have in South America men who are down there, I presume, in the interest of this country, looking after or trying to get strategic materials, and so forth; but I mean we have our representatives, and it would be, I think, a good thing if we do get some information incorporated in these hearings relative to our activities, the activities of our country in trying to protect the interests of the United States when this war is over. Mr. HARRIS. Will the gentleman yield at that point for an observation? Mr. HOLMES. Yes; I will yield. Mr. HARRIS. It appears to me that from the testimony we have had thus far before the committee, so far as these activities are concerned, in the testimony presented by Colonel Gorrell and other witnesses, and particularly the activities of the C. A. A., and the special interest that the members of this committee and Members of the House have manifested, together with the fact that the President through an Executive order has set up a committee to study this problem, that the interests of the United States are not being neglected; that we are going into it in a manner to try to find out what is necessary and what we can do in order to see that the United States is protected in this important problem. I think the Administrator's testimony, as he has given it to us today, together with the testimony given by other members of the Civil Aeronautics Board and from the administration, certainly puts us on record that we are giving the most thorough study to the problem. I personally feel that with all this activity going on that the interests of the United States are not going to go lagging. We are aware of this important problem and endeavoring to do something about it. Mr. HALL. Mr. Chairman. The CHAIRMAN. Mr. Hall. Mr. HALL. I did not bring this matter up, because I am of the opinion we are not doing anything. I would like to know, however, what we are doing and while we know there is a great deal of activity, I do not believe any member of this committee knows just what this country has done or what any of its departments have done to protect our interest, so far as world air commerce is concerned after the war. I, for one, do not know what we have done, and I think it would be a good plan if this committee either in open session or perhaps in executive session would call in the proper officials and find out just what is being done to protect our interests in this connection. The CHAIRMAN. It is the purpose of the committee to have an executive session, Mr. Hall, and we hope we can get that information at that time. You may proceed, Mr. Stanton. Mr. STANTON. I have just gone over with you the work of our Aircraft Engineering and Inspection Division showing how the aircraft are inspected so that United States citizens are sure of getting sound and airworthy aircraft to fly. SAFETY REGULATION-FLIGHT ENGINEERING AND FACTORY INSPECTION DIVISION The normal function of the departmental office of this Division may be considered to involve two broad types of activity. The first of these might be characterized as "routine" and consists of: 1. Examining and analyzing technical data, flight test and inspection reports submitted to show or implement compliance with the civil air regulations governing performance, flight, and operating characteristics of airplanes and the granting and the continuance of production certificates or to show compliance with procurement specifications for airplanes issued by this or other agencies and recommending the granting or withholding, continuance or suspension of original airworthiness, type, and production certificates or the acceptance or rejection of airplanes. 2. Participating in the investigation of accidents believed to involve performance, flight, or operating characteristics of airplanes or production methods and taking such immediate remedial action as may be necessary. The second type of activity might be characterized as "developmental" and consists of: 1. Conducting such investigation, study, analysis, conferences, and correspondence as are necessary to develop in an orderly fashion badly needed new and revised regulations to be recommended for action by the Civil Aeronautics Board. 2. Preparing interpretive material intended to supplement the text of the regulations themselves and to facilitate the showing of compliance therewith. 3. Collecting, analyzing, and disseminating in useful form, information such as is contained in our technical, accident, and inspection records extending over the last 12 to 15 years, the technical literature, or the files of other Government agencies, intended to improve the safety of civil aviation. Since the beginning of the war the Army and Navy and other Government agencies have made use of the special capabilities of the personnel of this Division in the procurement of military airplanes and for other purposes and we have been requested by one or the other of them to undertake the following types of activity: 1. Prototype inspection of military airplanes procured upon the basis of C. A. A. requirements. 2. Production inspection of military airplanes whose prototypes have been designed to C. A. A. requirements. 3. The photographic measurement, by means of our especially developed equipment for this purpose, of the performance of various military airplanes. 4. The preparation of pilot handbooks of instructions for the operation of military airplanes. 5. Miscellaneous activities such as, for example, the evaluation and inspection of commercial airplanes procured by the Army, a survey of airplane production facilities undertaken at the request of the Senate Special Committee Investigating the National Defense Program (a copy of which was also supplied to the Army Air Forces), the use of our personnel to assist various manufacturers without previous experience in the establishment of satisfactory inspection systems for the manufacture of gliders, the furnishing of performance information to various offices concerning commercial airplanes, and so forth. The normal function of our branch offices is to conduct the inspections and flight testing necessary to determine compliance of aircraft manufacturers with the requirements governing the issuance of airworthiness, type, and production certificates. As has been indicated above, the personnel in these offices is now almost entirely absorbed in the inspection and flight testing of military airplanes. During the last year a total of 50 projects or models of military airplanes have been handled by our personnel in some 35 different factories in various parts of the United States. Our field personnel are now inspecting and flight-testing military airplanes and airplanes intended for the use of the civilian pilot training program or the Civil Air Patrol at the rate of more than 700 per month. We have received requests from the Army that we undertake inspection projects which we have been forced, due to lack of personnel, to refuse since present personnel is already occupied to capacity. MEDICAL DIVISION The next feature is the provision of airmen : The assurance that a supply of competent pilots, mechanics, traffic control men, and so forth are available. That starts with the medical examinations. We have a Medical Division in our safety-regulation service, which conducts some 250,000 medical examinations per year. Now, we do not employ a staff of Government doctors to conduct all those examinations, but we designate a corps of some 1,300 hometown physicians, who give these examinations in accordance with our specifications. Those specifications vary, of course, as to types. Some men are being examined for professional pilots; some as private pilots; some as mechanics, dispatchers, and for other classes of air work. Now, our review staff in Washington reviews the reports of the examinations given by these 1,300 physicians throughout the length and breadth of the country-and a few are designated in South and Central American cities-and where any mistake has been made with respect to finding a man medically qualified, they rectify that mistake. If the examiner's report is found to be satisfactory he issues a medical certificate, and that certificate is given to the inspector at the time the |