Government have decided that negotiations with United States for bilateral agreement for fixed term, say ten years, may proceed on assumption that multilateral agreement will not be made dealing with control of international routes, frequencies and quotas, and subject to reconsideration in event of such multilateral agreement being eventually made. Agreement may be on basis of unlimited frequencies and services onward but should secure reciprocal rights and an obligation to use Shannon airport to the greatest extent you can secure. United States should assist us to obtain machinery and materials necessary for early completion of Shannon and Dublin airports and make available for purchase aircraft of most modern and satisfactory types for use by us on Atlantic or European routes.

Our rights to operate services between Éire and Britain and Continent connecting with trans-Atlantic services and facilitating through traffic therewith should be reserved. The negotiations may present an opportunity of dealing with our anomalous position at Shannon airport in regard to servicing of American planes by British staff.

At appropriate stage, you should inform British and other States proposing trans-Atlantic services that we are prepared to make similar bilateral agreements with them. In this connection, inform British that we are withdrawing in any event from 1935 arrangements.

Before signing agreement with United States, refer back for approval of details.