B-103315, OCT 4, 1956

B-103315, OCT 4, 1956

PRECIS-UNAVAILABLE

MR. SECRETARY:

REFERENCE IS MADE TO LETTERS OF MARCH 29 AND JULY 9, 1956, WITH ENCLOSURES, FROM THE DIRECTOR, OFFICE OF FINANCE, DEPARTMENT OF STATE, REQUESTING CERTAIN EXCEPTIONS FROM PARAGRAPH 5 OF OUR GENERAL REGULATIONS NO. 123, DATED MAY 1, 1955, PROHIBITING THE USE OF TRAVEL AGENCIES TO SECURE PASSENGER TRANSPORTATION SERVICES FOR OFFICIAL GOVERNMENT TRAVEL "WITHIN THE UNITED STATES, CANADA, OR MEXICO, BETWEEN THE UNITED STATES AND FOREIGN COUNTRIES, BETWEEN THE UNITED STATES AND CANADA OR MEXICO, BETWEEN THE UNITED STATES AND ITS POSSESSIONS, AND BETWEEN AND WITHIN ITS POSSESSIONS."

YOUR DEPARTMENT ASKS FOR AN EXCEPTION FROM THE PROHIBITION FOR TRANSPORTATION FROM GENEVA TO THE UNITED STATES, KABUL, AFGHANISTAN, TO THE UNITED STATES, AND FROM KARACHI, PAKISTAN, AND ITS CONSTITUENT POSTS, DACCA, EAST PAKISTAN, AND LAHORE, WEST PAKISTAN, TO THE UNITED STATES. ALSO, WE UNDERSTAND THAT OTHER POSTS HAVE REQUESTED AN EXCEPTION BUT THAT THOSE REQUESTS HAVE NOT BEEN FORWARDED HERE PENDING A DETERMINATION ON THE GENEVA, KABUL, AND KARACHI CASES.

SINCE THE RECEIPT OF THE REQUESTS SEVERAL CONFERENCES CONCERNING THE TRAVEL AGENCY RESTRICTION HAVE BEEN HELD BY OUR OFFICE WITH OFFICIALS OF YOUR DEPARTMENT, AS WELL AS WITH REPRESENTATIVES OF MAJOR AMERICAN FLAG OCEAN AND AIR CARRIERS PROVIDING REGULAR SERVICE TO AND FROM FOREIGN COUNTRIES.

AS A RESULT OF INFORMATION AND VIEWS OBTAINED AT THOSE MEETINGS AND FROM THE OBSERVATION OF OUR OWN REPRESENTATIVES, WE NOW ARE OF THE OPINION THAT THE RESTRICTION IN PARAGRAPH 5 SHOULD BE MODIFIED TO PERMIT THE USE OF TRAVEL AGENCIES FOR OBTAINING PASSENGER TRANSPORTATION FROM FOREIGN COUNTRIES TO THE UNITED STATES, SUBJECT TO THE FOLLOWING:

1. (A) THE REQUEST BE MADE FIRST TO THE COMPANY BRANCH OFFICE OF AN AMERICAN FLAG AIR OR OCEAN CARRIER IF THE TRAVEL ORIGINATES IN A CITY OR ITS CONTIGUOUS CARRIER-SERVICING AREA IN WHICH SUCH OFFICE IS LOCATED; OR ALTERNATIVELY,

(B) THE REQUEST BE MADE TO THE GENERAL AGENT OF THE AMERICAN AIR OR OCEAN FLAG CARRIER IF THE TRAVEL ORIGINATES IN A CITY OR ITS CONTIGUOUS CARRIER- SERVICING AREA IN WHICH SUCH GENERAL AGENT'S OFFICE IS LOCATED; OR ALTERNATIVELY,

(C) THE REQUEST MAY THEN BE MADE TO A TRAVEL AGENCY.

2. TRAVEL AGENCIES MAY BE USED IN THE FIRST INSTANCE ONLY WHERE COMPANY BRANCH OFFICES, OR OFFICES OF GENERAL AGENTS, OF AMERICAN CARRIERS ARE NOT AVAILABLE IN THE CITY OR ITS CONTIGUOUS CARRIER SERVICING AREA IN WHICH THE OFFICIAL TRAVEL ORIGINATES;

3. WHEN THROUGH TICKETING ARRANGEMENTS FOR THE TRANSPORTATION ARE NOT AVAILABLE AT AMERICAN FLAG AIR OR OCEAN CARRIER OFFICES A TRAVEL AGENCY MAY BE USED;

4. NO PAYMENT IS TO BE MADE TO THE TRAVEL AGENCY IN ADDITION TO THAT WHICH WOULD BE PROPERLY CHARGEABLE HAD THE SERVICES REQUESTED BEEN OBTAINED DIRECTLY FROM THE CARRIER OR CARRIERS INVOLVED;

5. STEPS ARE TAKEN BY YOUR DEPARTMENT TO ASSURE THAT THE TRAVEL AGENCIES CONCERNED ARE FULLY COGNIZANT OF THE REQUIREMENTS OF SECTION 901 OF THE MERCHANT MARINE ACT OF 1936, 46 U.S.C. 1241, AND OUR DECISIONS RELATING THERETO, YOUR DEPARTMENT POLICY CONCERNING THE USE OF AMERICAN FLAG AIR CARRIERS, AND THE PROVISIONS OF OUR GENERAL REGULATIONS NO. 123.

WE HAVE ENDEAVORED IN OUR DECISIONS COVERING THE APPLICATION OF SECTION 901 TO FORMULATE REASONABLE RULES. WE CONSIDER IT ESSENTIAL TO EMPHASIZE, HOWEVER, THE NECESSITY OF FULL COMPLIANCE WITH SECTION 901, WHERE THE TRANSPORTATION EXPENSES ARE BORNE INITIALLY BY THE OFFICIAL TRAVELER THERE IS THE SAME RESPONSIBILITY FOR USE OF AMERICAN VESSELS AS WHEN THE TRANSPORTATION IS PROCURED FOR DIRECT TRAVEL BY THE USE OF GOVERNMENT TRANSPORTATION REQUESTS.

IN THAT REGARD WE HAVE NOT OVERLOOKED THE FACT THAT I FSM III 132 SPECIFICALLY REQUIRES THAT YOUR DEPARTMENT'S POLICIES CONCERNING EVIDENCE IN SUPPORT OF THE USE OF A FOREIGN FLAG SHIP BE FURNISHED EVEN IN THOSE INSTANCES WHEN THE TRAVELER MAKES HIS OWN ARRANGEMENTS COVERING EITHER PART OR ALL OF HIS TRAVEL. LIKEWISE, WE ARE AWARE OF, AND IN ACCORD WITH, YOUR STATEMENT OF POLICY THAT PREFERENCE SHOULD BE GIVEN TO AMERICAN FLAG AIRLINES IN THE PROCUREMENT OF AIRPLANE TICKETS.

OUR OFFICE WILL TAKE STEPS TO MODIFY PARAGRAPH 5 OF GENERAL REGULATIONS NO. 123 IN ACCORDANCE WITH THE ABOVE. MEANWHILE, TO THE EXTENT HEREIN INDICATED, YOUR DEPARTMENT IS AUTHORIZED TO UTILIZE TRAVEL AGENCIES FOR PASSENGER TRANSPORTATION FROM FOREIGN COUNTRIES TO THE UNITED STATES.