January 20, 1960

MEMORANDUM FOR RECORD

Dr. Ernst van der Beugel, formerly State Secretary of Foreign Affairs of the Royal Netherlands Government, and now deputy President of KLM telephoned me this morning. Both Mr. Kissinger and I had, some weeks ago, spoken and written to him suggesting that he visit the Center. This morning he offered to come to Cambridge for the day of May 11.

Van der Beugel is staying at the Savoy Hilton in New York (EL 5-2600 x 221) and can receive a telephone call there between nine and ten a.m. on January 21.

I talked with Kissinger who expressed pleasure at the prospect of a visit from van der Beugel, and asked that I invite him for the day, to lunch with us, to meet with Fellows from 2-4 pm.m., and possibly to meet with an undergraduate class from 11-12 a.m. The topic of the afternoon seminar might be European Integration and NATO Unity.

Miss Cole has checked the calendar of Center events, and has noted down van der Beugel's visit on March 11, for lunch and a 2-4 p.m. seminar as a Center fixture.

Mr. Kissinger and Miss Cole will discuss with Mr. Bowie this plan, and what best use can be made of van der Beugel during his visit here.

January 21, 1960

I telephoned Mr. van der Beugel this morning. He accepts, with pleasure, the Center's invitation to come to Cambridge on March 11. He will write to inform me about arrival time in Boston of his plane. He is ready to meet with Mr. Kissinger's 11-12 a.m. class, or to spend that time otherwise, as we may see fit: our decision on this may depend upon arrival time of his plane. He will not, as he sometimes does, bring with him the New York Manager of KLM; he will explain that he is not coming to make a "speech", but rather to participate in informal and private consultations with members of the Center.

Robert W. Barnett

[Y]

17th February 1960

E.H. van der Beugel, Esq.,
Deputy President,
KLM
Plesmanweg, 1,
s-Gravenhage, The Netherlands.

Dear Ernst,

It will be good to see you early morning on March 11. I myself
shall meet your 9:30 a.m. plane if you can let me know which one it is.

From 9:30 until 11:00 I intend to keep you to myself, and use the
occasion to show you something of the Boston-Cambridge area. At 11:00
I shall turn you over to Henry Kissinger, who would like you to join him
in handling his class of undergraduates studying European political
problems. He suggests that you talk about the Six and Seven, their im-
pact on European cohesion, their future prospects and the impact on the
North Atlantic Community.

Henry has asked a very few of his Harvard colleagues to join us for
lunch at 12:30 at the Faculty Club. At 2:00 the Center Fellows will meet
with you for a two hour seminar. Customarily, our guest speakers talk for
about forty-five minutes, and then expose themselves to questions. It
occurs to us that you should choose your own topic for that session. Two
possibilities: "Promise and Pitfalls in Present Trends Towards European
Integration", or - something even broader - "Nuclear Deterrence, European
Independence, and the Atlantic Community". Let us know which of these
topics lends itself best to what you want to tell us. Or give us another.

We are delighted that you are so soon to be with us.

With every good wish, I am,

KLM-ROYAL DUTCH AIRLINES

MANAGEMENT

The Hague, 28th March, 1960.

Mr. Henry A. Kissinger
Harvard University
Cambridge 38
Massachusetts U.S.A.

Now that the negotiations on the subject of landing rights for KLM in Los Angeles have come to a deadlock for the second time, I would like to give you an explanation of the exceptionally keen reaction of the Dutch nation as a result of this.

It is difficult to acquiesce when the United States deliberately adopts an unyielding attitude towards the perfectly reasonable wish of the Netherlands to operate an air service between important regions which are linked by increasingly strong business connections. After all, it cannot be denied that California and the Netherlands would be greatly benefited and would undoubtedly reap economic advantages from a direct KLM service.

Indeed, numerous representative organizations on the West Coast have openly declared this to the President of the United States and the State Department.

The fact that the airlines of France, England, Scandinavia and Germany have been authorized to operate services between California and Europe makes this refusal all the more difficult to understand, because this can only be interpreted as downright discrimination against a small but faithful ally in front of the world forum on both sides of the Iron Curtain.

The main argument of the American Government to deny these rights to the Netherlands was that there should be a balance in the economic benefits derived by both countries from the subject air - transportation and that such balance would not exist. This contention ignores the fact that the Netherlands Government has already granted to U.S. carriers all possible air rights to all possible points in its home country and territories.

- 2 -

KLM - ROYAL DUTCH AIRLINES

KONINKLIJKE LUCHTVAART MAATSCHAPPIJ N.V.

Our ref.:

Page 4
Date 28th March, 1960.

which pays so much attention to smooth relations with other nations, endangers its relations with the Netherlands on an issue which is of hardly any importance to the U.S.A. and of major importance to us.

I felt that I ought to write you to inform you of the unfortunate situation that has arisen, knowing your interest in the relations between our two countries.

58

April 18, 1960

Mr. E. H. van der Beugel
KLM
Plesmanweg 1
s-Gravenhage, The Netherlands

Dear Mr. van der Beugel:

I have just returned from a short
absence from the office to find your letter
of March 28th. It was very kind of you to
send it, and you may be sure that I fully
understand your position.

It was very good to see you during
your visit, and I hope we will have the
opportunity to meet again soon.

With kind regards.

Henry A. Klaasen

Sincerely yours,

With kind regards.

your visit, and I hope we will have the
It was very good to see you during

understand your position.
send it, and you may be sure that I fully
of March 28th. It was very kind of you to
apaise from the office to find your letter
I have just returned from a sport

Dear Mr. van der Begenel:

a-Gravenhage, The Netherlands
Blessemweg 1
KLM
Mr. E. H. van der Begenel

April 18, 1960

December 31, 1960

Mr. Ernst van der Beugel
Deputy President
KIM
New York 17, New York
609 Fifth Avenue

Dear Ernst:

I am looking forward to welcoming you here on the
8th of January.

Thank you for your letter of the 16th. It

Seminar and the luncheon following.

Address and also invited Mr. Koelman to the
contacted Mr. Brittan to let him know our
This is just to let you know that we have
6th of January.

With kind regards.

December 21, 1960

Mr. Koeleman
General Manager
KIM
609 Fifth Avenue
New York 17, New York

Dear Mr. Koeleman:

Mr. Ernst van der Beugel, deputy
President of KIM, is planning to visit the
Center for International Affairs at Harvard
on the 6th of January to give a seminar. We
would be delighted if you would join us here
at the Center at 10:30 a.m. that day for the
Seminar and also for lunch following at which
the Fellows and Faculty of the Center will
be present. We look forward to welcoming you,
and hope you will be able to come.

KLM - ROYAL DUTCH AIRLINES

609 FIFTH AVENUE
NEW YORK 17, N. Y.
PLAZA 9-2400

DATE : December 16, 1960

NUMBER :

Professor Henry Kissinger
Center for International Studies
Harvard University
6 Divinity Avenue
Cambridge, Massachusetts

My dear Henry:

What a piece of good luck I had yesterday to see you on the plane!

I had a few second thoughts. The first is that I was stupid enough not to tell you how delighted I would be if you could come over to Holland for a couple of days as my guest to lecture for our Council on Foreign Relations and a group of my political and government friends. We'll discuss this plan when I am in Cambridge on the 6th, but do look into your diary and see what dates would be convenient for you in the near future.

The second thought I had was that it might be better to invite our general manager in the United States, Mr. Koeleman, to our Harvard luncheon rather than our local Boston representative. Koeleman is very much interested in these matters and very close to me. So if this idea is agreeable to you and if, as I suppose, two would be too many, I would have a strong preference for taking Mr. Koeleman along.

I will meet you at 10:30 on the 6th, if the weather gods are with us, and you might let Mr. Butlerman of our Boston office know the exact address.

The memorandum which I promised you will be prepared and I'll send it to you, I hope next week.

With kind regards, and looking forward to seeing you -- I did enjoy our talk tremendously (as usual).

E.H. VAN DER BEUGEL

DEPUTY PRESIDENT

KLM ROYAL DUTCH AIRLINES

THE HAGUE,
1, PLESMANWEG
TEL. 184860

HAG/DF/315

December 23 1960

My dear Henry,

As I promised you in the plane from Boston to New York I herewith send you a record of the U.S. - Netherlands discussions about our request to get landing rights at the West Coast of the U.S.

This record is as factual as possible but nevertheless an understatement of what really happened. What is left out, is the constant stream of assurances by top Administration people, that the thing would be settled.

On numerous occasions Mr. Herter and Mr. Dillon and their staff have assured our Foreign Minister and other people from our Government that it was much better not to bring the thing into the open because things were practically in the bag. There is a definite feeling in the Netherlands Government that we have been treated badly.

Nevertheless I think that the record speaks for itself and that the most incredible incident was that after the conversation of the Ambassador on November 9th on December 7th the balance of payments argument was brought up, which in its absurdity is unique. Everybody knows that a purchase of one DC-8 (of which by the way we have bought 12) will affect the balance of payments of the U.S. more favourably than a daily frequency to Los Angeles would ever cost them in dollars.

Here follows the general picture of the arguments which are used by the U.S. and by us. I know that they are not necessary for the purpose you mentioned to me but I very much want you to be informed. You then will realize that in a growing multilateral world on this specific point we still live in the pre-historic bilateral jungle.

In international civil aviation policy two schools of thought oppose each other: one advocates the freedom of the air on the analogy of the freedom of the seas; the other preaches protection of the national carriers by the respective governments.

Both the U.S. and the Netherlands in 1945 adhered to the "freedom of the air" concept but while the Netherlands in theory and practice maintained this policy (and moreover is not likely to change it in future) the U.S. gradually turned to a more protectionist

Professor Henry A. Kissinger
6 Divinity Avenue
Harvard University
Cambridge 38
Massachusetts

in Europe which has supported the U.S. in practically every respect of its foreign policy, it is the Netherlands. This is not a matter of philanthropy but here we realize that the U.S. leads the Western world.

When we witness how much effort and money the U.S. spends to build up good relations with other countries, it is beyond comprehension that they are willing to strain relations with their allies on this specific point where public opinion in many countries is extremely sensitive and where the U.S. interests are so small. They did the same with the Scandinavian countries, where bitterness in public opinion is very great indeed. An imaginative U.S. foreign policy should clearly see that the interests at stake in the U.S. are chicken feed compared to the harm which is done in relations with smaller countries which have no real power, but which are extremely useful in the whole framework of U.S. foreign policy.

I am very much looking forward to our meeting on the 6th of January. I just got a cable that I see Dean Rusk on the 5th and I will not fail to talk about this subject amongst the many other things we are going to discuss.

With kind regards

US - NETHERLANDS' AIR RELATIONSHIP

September 1946 First Netherlands-US civil air negotiations. US does not accept Dutch route proposals. System of temporary permits allowing KLM to fly the Amsterdam-New York and the Curaçao-Miami route, and US carriers to exercise traffic rights in Amsterdam, Paramaribo and Willemstad.

1951 New negotiations for the conclusion of a bilateral air agreement fail because of restrictive attitude of US with regard to capacity regulation. The status quo is maintained.

July 27, 1955 Renewed negotiations between US and the Netherlands are postponed by the US because of public reactions against the allegedly too liberal US route grant in the US-German bilateral air agreement concluded shortly before that date.

March 27, 1956 Conclusion Treaty of Friendship between US and the Netherlands.

April 5, 1956 Finally negotiations take place in Washington, but break down on June 13, because of the US refusal to grant the main Dutch request viz. the Los Angeles route.

March 18, 1957 Exchange of letters between the Prime Minister of the Netherlands and the President of the US concerning the forthcoming US-Dutch civil air negotiations. From the answer of the President of the US: "I have instructed the US delegation for the forthcoming civil air negotiations to give the most serious consideration to the factors described in your letter".

March 19, 1957 Resumption of negotiations resulting in the conclusion of a bilateral air agreement on April 3, 1957. Although the main Dutch request i.e. for the Los Angeles route was not granted, the agreement was accepted because in an exchange of letters between the Heads of Delegation the possibility was opened to request the Los Angeles route at a future date.

September 3, 1959 After continuous soundings during 1958 and 1959 as to the opportune moment for renewed negotiations concerning the Los Angeles route, a formal request to resume the talks is made.

September 12, 1959 The President of the US is informed about the coming negotiations.

December 16-18, 1959 Technical discussions take place in preparation of renewed negotiations.

February 3, 1960 Consultations which had started on January 7, are broken off.

- 2 -

<table>
  <tbody>
    <tr>
      <td>April 21, 1960</td>
      <td>State Department suggests to Embassy that resumption of negotiations be requested in May, so that renewed consultations can begin immediately after recess of Congress on July 4.</td>
    </tr>
    <tr>
      <td>May 25, 1960</td>
      <td>This suggestion is being reiterated, whereby State Department indicates that negotiations might be resumed in September.</td>
    </tr>
    <tr>
      <td>June 17, 1960</td>
      <td>Mr. Dillon states that he is willing to personally brief the President on the KLM-case.</td>
    </tr>
    <tr>
      <td>July 8, 1960</td>
      <td>Mr. Dillon informs the Chargé d'Affaires a.i. that interagency consultation continues and that he has not yet been able to brief the President.</td>
    </tr>
    <tr>
      <td>July 21, 1960</td>
      <td>Assistant Secretary for Economic Affairs, Mr. Mann, informs Chargé d'Affaires a.i. that President Eisenhower deems resumption of civil air consultations to be "impracticable and imprudent". The reason given for this is that the CAB permit-procedure is likely to be protracted beyond his term of office. This would imply that the President would commit his successor which he is not prepared to do.</td>
    </tr>
    <tr>
      <td>August 26, 1960</td>
      <td>Under Secretary of State confirms Mr. Mann's communication of July 21. He blames prolonged session of Congress for this development.</td>
    </tr>
    <tr>
      <td>October 8, 1960</td>
      <td>Netherlands Foreign Minister visits White House for a discussion of KLM-case. President Eisenhower promises "to put the thing back on the rails again and try to reach some satisfactory arrangement awaiting the final decision of my successor".</td>
    </tr>
    <tr>
      <td>November 9, 1960</td>
      <td>Mr. Dillon informs Dr. van Roijen that after Mr. Luns' visit to the President, the matter had been reconsidered and that State Department was now looking forward to a resumption of consultations at the beginning of December. This new development was the result of the President's wish "to get through with it and do away with it".</td>
    </tr>
    <tr>
      <td>December 4, 1960</td>
      <td>The Dutch Ambassador is assured that things are going well but waiting for the return of Mr. Dillon from abroad.</td>
    </tr>
    <tr>
      <td>December 7, 1960</td>
      <td>Assistant Secretary for European Affairs, Mr. Kohler, informs the Ambassador that the case has again been reconsidered, this time in the light of the present balance of payments situation, which has led President Eisenhower to the conclusion that, mainly from a public relations viewpoint, negotiations cannot be resumed.</td>
    </tr>
    <tr>
      <td>December 9, 1960</td>
      <td>Mr. Dillon confirms Mr. Kohler's statement and indicates that the President's decision has been greatly influenced by the Secretary of the Treasury.</td>
    </tr>
  </tbody>
</table>

WESTERN UNION
TELEGRAM

W. P. MARSHALL, PRESIDENT

SF-1201

SYMBOLS

DL = Day Letter

NL = Night Letter

LT = International
Letter Telegram

The filing time shown in the date line on domestic telegrams is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of destination

630A EST FEB 1 61 BA039

SYB058 SY JAB071 PD 3 EXTRA WUX INTERNATIONAL AIRPORT NY 1 50A

EST

KISSINGER

HARVARD UNIVERSITY CAMBRIDGE MASS

WROTE YOU LETTER WHICH WAS MAILED JANUARY 20 IN WHICH I WROTE

THAT FIRST WEEK OF MAY WAS PERFECTLY AGREEABLE AND THAT I AM

WORKING AT ARRANGEMENTS FOR TWO LECTURES STOP AWFULLY SORRY

THAT LETTER DID NOT REACH YOU BUT US EUROPE MAIL IS COMPLETE

MESS STOP WROTE YOU SECOND LETTER ON JANUARY 25 ABOUT DIFFERENT

MATTER STOP WILL BE IN NEWYORK FEBRUARY 16 17 18 27 AND 28 AND

WILL TELEPHONE YOU REGARDS

VANDERGEUGEL KLM THE HAGUE KLM ROYAL DUTCH AIRLINES

20 25 16 17 18 27 28

WESTERN UNION
TELEGRAM

W. P. MARSHALL, PRESIDENT

SF-1201

SYMBOLS

DL = Day Letter

NL = Night Letter

901P EST FEB 7 61 BA444

SYA841 SY JAA724 PD AR WUX INTERNATIONAL AIRPORT NY 7 813P EST

PROFESSOR HENRY KISSINGER

CENTER FOR INTERNATIONAL STUDIES HARVARD UNIVERSITY 6 DIVINITY
AVE CAMBRIDGE MASS

PLEASE LET ME KNOW WHETHER 2 AND 3 OF MAY WOULD BE AGREEABLE
TO YOU 2 WOULD BE MY DINNER PARTY FOR ABOUT 30/40 PEOPLE IN
WHICH YOU CAN TALK ABSOLUTELY FREELY BUT AFTERWARDS I SHOULD
LIKE TO HAVE A DISCUSSION 3 WOULD BE SPEECH FOR OUR INSTITUTE
FOR INTERNATIONAL AFFAIRS COMBINED WITH OTHER INTERESTED ORGANIZATIONS

FOR SECOND EVENING ORGANIZER SHOULD LIKE TO HAVE TENTATIVE
INDICATION OF SUBJECT MAY I SUGGEST PRESENT STATE OF AMERICAN
FOREIGN POLICY MARK ANY OTHER THING WHICH YOU SHOULD PREFER
WILL DO MAY I FURTHER SUGGEST SENDING ME CURRICULUM VITAE STOP
WILL BE IN NEW YORK 16 AND 17 OF FEB SAVOY HILTON HOTEL REGARDS
E H VAN DER BEUGEL KLM ROYAL DUTCH AIRLINES NEWYORK.

February 14, 1961

Mr. Ernst Van Der Beugel
Deputy President
KLM
609 Fifth Avenue
New York, New York

Dear Ernst:

Many thanks for your cables. Actually, I now find that I must give my last lecture on May 3rd, so the week after would be better for me. I could plan to leave immediately after the 3rd, but I am usually pretty beaten up after a trans-Atlantic flight. Perhaps the dinner could be held on Friday night or else early in the next week.

The topic you have suggested, "The Present State of American Foreign Policy," sounds fine to me.

I am enclosing a revised copy of my biographical statement.

I plan to be in New York on the 16th and will try to get in touch with you at the Savoy Hilton.

With kind regards.

P.S. I am sending the biographical statement separately to Holland.

February 21, 1961

Mr. Ernst H. Van Der Beugel
Deputy President
KIM
609 Fifth Avenue
New York 17, New York

Dear Ernst:

It was good to talk to you on the telephone. I am afraid I have not made too much progress in clarifying my situation. I probably could get away the week of May 1st, but it would be quite difficult. On the other hand, it you have already made a firm arrangement, we will have to weigh the difficulty of changing this against my difficulty in getting away.

I would therefore like to propose the following: Would you, after you get back to The Netherlands, attempt to postpone the meetings for one week. If you find this impossible or embarrassing, please wire me immediately and we can then proceed as now planned.

I know this violates the administrative maxim of never giving the other side the option of pleading technical impossibility, but I am taking my chances on it nevertheless.

Kind regards--sorry to have been so difficult.

E.H. VAN DER BEUGEL KCMG
DEPUTY PRESIDENT
KLM ROYAL DUTCH AIRLINES

THE HAGUE,
1, PLESMANWEG
TEL. 164860

January 25 1961

Dear Henry,

My friend, Dr Pieter Blaisse, Member of Parliament and Deputy Chairman of the European Parliamentary Assembly will spend a few days in the U.S. and I thought that it would be a nice thing for the Center, for you personally and for him if he could address the Center during his stay in the U.S.

He is the top Dutch expert on problems of the European Economic Community and a very prominent Catholic member of the Dutch and the European Parliament. He has been in Government service for 10 years and combines great governmental, Parliamentary and business experience.

He is the principal speaker on foreign policy in the Catholic party, which as you might know is the largest Party in the Netherlands.

Mr Blaisse is a very good and personal friend of Linc Gordon.

The days he would be available for Harvard are Tuesday the 18th April and Wednesday the 19th. Please let me know whether you can arrange something.

You will hear from me as soon as possible about the arrangements of your visit in May.

Prof. Henry A Kissinger
Center for International Affairs
Harvard University
6 Divinity Avenue
CAMBRIDGE 38 (Mass.)
USA

[4]

March 8, 1961

Mr. Ernst Van der Beugel
Deputy President, KLM
1, Plesmanweg
The Hague, The Netherlands

Dear Ernst:

I spoke with Mr. Koeleman yesterday, and wanted to tell you how much I appreciate your working things out for me for May 8th and 9th.

I would like, in connection with some of my Washington activities, to go to Paris, and perhaps Bonn and London, for a day or two each. We will discuss my travel plans with Mr. Koeleman and perhaps will ask your assistance in getting me in touch with some senior people in the Dutch Foreign Office to get some of their views. If there has to be any publicity for my talk, I would be very grateful if as little as possible, and preferably nothing at all, be said about my connection with Kennedy.

With kind regards.

March 13 1961

Dear Henry,

Thank you very much for your letters of March 7 and 8.
I can hardly tell you how much I am looking forward to your
visit.

I think that I have invited a very authoritative
group for our dinner on the 8th and I will take care of the fact
that in the publicity for your speech for the Institute no
mention is made of your connection with the President.

While you meet the high officials of the Foreign Office
and Defense at my dinner party I shall certainly see to it
that during the day you shall meet with some of them. Prince
Bernhard will attend the dinner, furthermore members of the
Government, leaders of industry and leading members of Parliament.
Unfortunately our Foreign Minister and his Deputy will have to
attend the NATO meeting in Oslo on the same day as our dinner.

Thank you very much for your invitation to Pieter
Blaisse.

As to the expenses, I want you very much to consider yourself my guest during your stay in Holland.

Perhaps you can have dinner with my wife and myself on
Sunday evening the 7th. I presume that the technical details
about your trip will be dealt with through Koeleman. I have reserved
a room for you in Hotel Wittebrug.

With kind regards

Professor Henry A. Kissinger
Harvard University
6 Divinity Avenue
CAMBRIDGE 38 (Massachusetts)
USA

E. H. VAN DER BEUGEL KCMG

THE HAGUE, 15th March, 1961

I, PLESMANWEG
TEL. 184860

I have pleasure in introducing Professor I. Samkalden, who teaches Law of International Organizations at Leyden University.

In addition to his university post, he is a prominent member of the Dutch Labour Party, which he represents in the Upper House of the States-General.

During the period when I held office in the Netherlands Government, Professor Samkalden was Minister of Justice. In this capacity he earned a great reputation on account of his outstanding ability and the energy with which he approached the numerous problems confronting him.

Furthermore I consider him as one of the foremost experts on the legal and political problems connected with the new European organizations.

Formerly he was employed in various governmental functions in the Netherlands East Indies.

Professor Samkalden will be in the U.S.A. in the first three weeks of April and he would greatly appreciate it if he could meet you on that occasion.

I have suggested that he should contact you after his arrival in the United States in order to try to arrange an appointment with you.

Trusting that this will meet with your approval,

Prof. Henry A. Kissinger,
6 Divinity Avenue,
Harvard University,
Cambridge 38.
Massachusetts.

April 18, 1961

Mr. Koeleman
General Manager, KLM
609 Fifth Avenue
New York 17, New York

Dear Mr. Koeleman:

First, may I tell you how much I appreciate
your helpfulness in planning my trip to Europe this
May.

I would also like to confirm the schedule
we discussed on the telephone today, and I am
attaching it.

If there are any difficulties, please let
me know immediately. My semi-official status
makes it necessary to notify the embassies by
cable of my travel.

With kind regards, and, again, many thanks.

K. L. M. ROYAL DUTCH AIRLINES

D. J. KOELEMAN
VICE PRESIDENT AND GENERAL MANAGER - U.S.A.

April 21, 1961

Professor Henry A. Kissinger
Harvard University
Center for International Affairs
6 Divinity Avenue
Cambridge 38, Massachusetts

Dear Professor Kissinger:

Enclosed I am pleased to send you the tickets for your trip
starting May 3.

Also enclosed is an itinerary, which deviates as follows from
the one you sent me:

1) Thursday, May 4; depart Amsterdam at 9:45, not 9:40.

2) The itinerary you sent reads, for Saturday, May 13, Duesseldorf to "Paris," which must be an error, as I am sure London was meant. You have therefore been booked to leave Duesseldorf for London, departing at 9:35, arriving London 11:10 A.M., on BEA 617. Lufthansa flight #138, as mentioned on your list for this segment, does not operate on May 13.

Otherwise the details seem to be completely in order.

The total amount to be paid is $1,030.20, from which we deduct
the round trip New York - Amsterdam, which has already been
settled, leaving a balance of $90.60 to be paid. At your
convenience, will you please make out a check in this amount
to KLM Royal Dutch Airlines and send it in an envelope addressed
to me personally.

I hope you will not hesitate to get in touch with us in case you
wish to change your itinerary or if we can be of assistance to
you in any way. Looking forward to seeing you again,

Enclosures

May 10 1961

HAO/DF/212

My dear Henry,

1. Last night you asked some questions about the problem of the KLM landing rights on the West Coast which His Royal Highness and some others raised with you at our dinner. Since this is a rather complicated issue I thought it best to put a few points on paper.

2. The history of these negotiations is a rather long and frustrating one as you will see from the attached chronology of events. After the new Administration took office the matter was again raised with the President by Prince Bernhard and Minister Luns, who also discussed the problem with Secretary Rusk. Rights on the West Coast are essential for our world wide operations and especially so because apart from the American carriers practically all the important foreign airlines, like B.O.A.C., S.A.S., Lufthansa, Air France, Alitalia have obtained these rights.

We were grateful that very shortly after the discussions with the President and Secretary Rusk the State Department informed us that they were willing to resume the negotiations. It was, however, a great shock to us when we were faced with the conditions which the U.S. Administration put before us before the negotiations started on the 8th of May and which are now in progress.

3. What the U.S. in its proposals try to obtain is the acceptance of the Netherlands Government that in exchange of the twice weekly frequency to the West Coast of the U.S. the Netherlands Government should be willing to provide to the U.S. Government the so called origin and destination statistics. These statistics would be used to limit the number of frequencies operated by KLM to and from the U.S. to such an extent that 85 % of the passengers carried by KLM should either originate from or have as their final destination Amsterdam. If any person would stop in Amsterdam less than 72 hours this passenger would be considered as falling outside the 85 % category. Needless to say that the wording of the proposal is much more complicated than the abovementioned notion, but it amounts exactly to this point of view.

These conditions can never be met by a small country which has traditionally played a great role in the field of providing services to the rest of the world. It implies that a small country should have a small airline and that geographical size and number of inhabitants would govern economic activity in this field. This would not be dangerous but fatal to KLM.

Professor Henry A. Kissinger
c/o Hotel Wittebrug

THE HAGUE.