By SMF, NARA, Date 5/17/00
MEMORANDUM FOR: Sommer
SUBJECT: Secretary Shultz’s Evening Report of 12/4
The following excerpt is for your information only. Please do not refer to it in any of the discussions.
3. Civil Air Talks with the British.
Following up on Ken Dam’s November 28 ministerial-level meetings in London, US and UK negotiators met informally November 28 and November 30. Unfortunately, no progress was made, due to the British insistence that any movement on the issues of interest to us (greater pricing and capacity flexibility, as well as assurances that UK carriers would abide by US anti-trust laws in setting of prices) would require our undertaking to seek repeal of the private treble-damage provisions in the Clayton Act. We feel that the British have continued to miss the political message that bold measures on their side establishing a more competitive, open environment are required. We are continuing to drive this point home with the British, and meetings with Ken Dam, Allen Wallis and I will have with senior British officials over the next week will be used for that purpose. In all of these discussions, we plan to stress the need to resolve this issue prior to your meeting with Mrs. Thatcher on December 22. (SENSITIVE)