that such review and approval should be limited to cases affecting the national defense or foreign policy.

It is the position of the Department of the Interior that, if favorable consideration is given by your committee to S. 1119, the existing language in section 801 of the Civil Aeronautics Act of 1938, as amended, should not be changed and that section 27 of S. 1119 should be amended accordingly.

We would also suggest that the reference to Puerto Rico in each bill might appropriately be expanded to take account of the area's new status. In view of the establishment of the Commonwealth of Puerto Rico in July of 1952, it seems to us appropriate for the Congress to exercise no greater authority in the case of Puerto Rico than it may constitutionally exercise in the case of a State of the Union. This result would be achieved if, in the case of S. 308, the semicolon at the end of line 6, page 7, were struck and there were inserted in lieu thereof the following:

": Provided, That the application of this Act to Puerto Rico shall not involve the exercise of Federal authority in Puerto Rico beyond the extent to which it may be exercised in a State of the Union."

The same change could be made in S. 1119 by striking out the semicolon at the end of line 20, page 6, and inserting the same new language.

We are informed that there is a particular urgency for your committee to have this report and that hearings on S. 308, S. 1119, and amendments to S. 1119 will commence on April 26. In view thereof, this report is being submitted to the committee prior to clearance through the Bureau of the Budget and we are not in a position to advise you concerning its relation to the program of the President. Sincerely yours,

Hon. WARREN G. MAGNUSON,

FRED G. AANDAHL,

Assistant Secretary of the Interior.

DEPARTMENT OF LABOR,

OFFICE OF THE SECRETARY, Washington, D. C., April 26, 1955.

Chairman, Committee on Interstate and Foreign Commerce,

United States Senate, Washington 25, D. C.

DEAR SENATOR MAGNUSON: This is in further response to your request for my views on S. 308, a bill to amend the Civil Aeronautics Act of 1938, as amended, and for other purposes.

This measure proposes extensive amendment of the Civil Aeronautics Act of 1938, as amended, the basic statute under which civil aviation operates in this country, as well as changes in related provisions of certain other statutes which apply to this industry. The Department of Labor is not directly concerned with the regulation of civil aviation. It does, however, have an interest in those provisions of the proposed measure which may have an impact upon coverage of the Nation's workers under the Fair Labor Standards Act, which is administered by this Department.

At present, the Civil Aeronautics Act regulates common carriers by air. These carriers and their employees are also covered under title II of the Railway Labor Act. S. 308 would extend this regulation to contract carriers by air, and include such carriers and their employees under title II of the Railway Labor Act.

In addition, S. 308 would exclude from the Railway Labor Act a broad category of supervisory personnel of both common and contract carriers, in the same manner that section 2 (11) of the National Labor Relations Act, as amended, excludes supervisory personnel from coverage under the latter act.

Section 13 (b) (3) of the Fair Labor Standards Act exempts from the overtime requirements of the act, employees covered by the Railway Labor Act. The first of the provisions discussed above makes it clear, therefore, that employees of contract carriers would not be covered by the overtime provisions of the Fair Labor Standards Act. The National Mediation Board and the Civil Aeronautics Board have never clearly distinguished contract carriers from common carriers for purposes of the Railway Labor Act. Employees of these carriers have, as a result, been treated as exempt under the Fair Labor Standards Act. The enactment of S. 308 would thus have little effect upon their status under that act.

The second provision discussed above would presumably bring these supervisory personnel under the Fair Labor Standards Act, since it excludes them

from the Railway Labor Act. Many of these employees, however, would no doubt fall within the exemption granted to "executives" under section 13 (a) (1) of the Fair Labor Standards Act.

Since the enactment of S. 308 in its present form would thus have little effect insofar as the Fair Labor Standards Act is concerned, I have no objection to its enactment.

The Bureau of the Budget advises that it has no objection to the submission of this report.

DEAR MR. CHAIRMAN: Reference is made to your request for the comments of the Department of Defense on S. 1119, 84th Congress, a bill to amend the Civil Aeronautics Act of 1938, as amended, and for other purposes, together with the amendment dated February 18, 1955, and the 3 amendments dated March 23, 1955, which Senator Magnuson proposed thereto. Reference is also made to your request for similar comments with respect to S. 308, 84th Congress, a similar bill. The Secretary of Defense has delegated to this Department the responsibility for expressing the views of the Department of Defense on this matter.

On the 25th of April 1955, the Department of the Air Force forwarded to you separate reports on S. 1119 and S. 308. Subsequently, the amendments to the Civil Aeronautics Act proposed by those bills have received further study within the Department of Defense, and the views asserted in the reports submitted to you on the 25th of April 1955 have been revised on several points. In order that you may have access to the revised positions of the Department of Defense, this combined report on S. 1119 and S. 308 is submitted for your consideration. Although both S. 1119 and S. 308 would amend numerous sections of existing law governing civil aviation matters, the most significant changes relate primarily to the overall scheme of economic and safety regulation of civil aviation, and the methods for carrying this out. The military departments have extensive contractual relations with the airline industry, even in peacetime, for purposes of moving personnel and supplies by air. Hence, we have a real interest in the availability of sufficient airlift capacity at reasonable prices to meet such needs. In addition, the military departments have very important requirements for strategic route services to meet part of their worldwide communication and transportation needs.

However, development of a financially sound civil air transportation system, which would assure these capabilities at the lowest cost to the Government, is based on various economic factors that do not fall within the purview of the Department of Defense. The Department is, therefore, not in a position to make any worthwhile evaluation of the effect the amendments proposed in these bills would have on the route structure or the capability of civil aviation to assist the military in a national emergency. At the same time, it can be said that no serious impediment has presented itself, under existing applicable law, in transactions between the Department of Defense and civil aeronautics agencies of the Government or the air carrier industry. Likewise, the enactment of either S. 1119 or S. 308 would not appear to substantially modify existing law in any way prejudicial to such transactions.

While the Department of Defense has no objection to either bill from an overall standpoint, it is felt that certain detailed amendments of a technical nature, as hereinafter set forth, should be made to the bills.

1. (a) Section 5 of S. 1119 (sec. 6, S. 308) would amend section 1 of the Civil Aeronautics Act of 1938, as amended, by adding several new definitions, including substitution of the term "air navigation" for the existing term "air commerce." The Department of Defense feels very strongly that adoption of this new definition would be inadvisable, in view of the established meaning of the present term "air commerce," both in practice and by judicial decision.

(b) The proposed definition of "air navigation" would include, among other things, operation of aircraft on commerce or otherwise upon any "airport" in the United States. Section 3 of both bills would strike the definition of "air commerce" appearing in paragraph (3) of section 1 of the Civil Aeronautics Act of 1938. The existing definition of "air commerce" does not include the term "airport." Further, sections 13, 22, 26 (a), 28, 30 (f), 35 (a), and 38 of S. 1119 (secs. 14, 25, 29, 31, 33 (f), 38 (a), and 41 of S. 308) would substitute the proposed broader term "air navigation" in lieu of "air commerce" in sections 3 (Public Right of Transit), 601 (Minimum Standards; Rules and Regulations). 610 (Violations of Title), 803 (Weather Bureau), 902 (h) (Transportation of Explosives and Other Dangerous Articles), 1005 (a) (Effective Date of Orders; Emergency Orders) and 1101 (Hazards to Air Commerce), respectively, of the existing statute. In view of the foregoing proposed amendments it is felt that the definition of "airport," appearing in section 1 (8) of the Civil Aeronautics. Act of 1938, should be simultaneously amended to make it clear that certain provisions of the act (as they would be amended by both bills), relating to the power and responsibility of the Authority with respect to "airports," do not apply to military airbases. It is, therefore, recommended that S. 1119 be amended by inserting the following new section after section 6 (line 12, p. 4, of the bill), and by renumbering present section 7, and all subsequent sections, of S. 1119 accordingly. (The same amendment is recommended for S. 308, by inserting it as new section 8, after section 7 (line 2, p. 5, of the bill), and by renumbering present section 8 and all subsequent sections of S. 308 accordingly):

"SEC. 7. Paragraph 10 of section 1 of the Civil Aeronautics Act of 1938, as amended, is amended to read as follows:

"(10) Airport' means any landing area regularly used by civil aircraft for receiving or discharging passengers, or cargo, but shall not include any such area, or part thereof, under the jurisdiction, custody, or control of a military department."

This proposed definition is carefully designed not to exclude so-called joint-use airports to the extent that such airports are under civil jurisdiction.

2. With the exception of section 14 of the bill, neither S. 1119 nor S. 308 undertakes to amend title III of the Civil Aeronautics Act. (Title III defines the powers and duties of the Administrator). However, the proposed definition of "air navigation" might be construed so as to expand the authority of the Administrator under title III to encompass matters properly within the exclusive authority of the military departments. Therefore, the terms "air navigation" and "air navigation facilities" should be limited wherever they appear in title III so as to make it clear that the act does not intend to give a civil agency the statutory authority to interfere in purely military aviation matters. Such limitation might best be effected by inserting the word "civil" before the terms "air navigation" and "air navigation facilities" where they appear in sections 301, 302, 303, 305, and 307 of the act.

3. In formulating and revising the nationwide program for the protection of aerial approaches to airports, as proposed in section 14 of S. 1119 (sec. 16, S. 308), it is felt that the Secretary of Commerce should coordinate with other interested Government agencies. It is therefore, recommended that the new section 311 (a), proposed by section 14 of S. 1119 (sec. 16, S. 308), be amended by placing a comma after the word "Commerce", appearing in line 2, page 8, of S. 1119 (line 5, p. 9, of S. 308), and by adding the following immediately thereafter.

"after considering the views and recommendations of other interested Federal agencies,".

4. In order not to handicap the Department of Defense, in its negotiations for contract airlift, new section 450 (e), as proposed by section 21 of S. 119 (sec. 24, S. 308), should be amended by adding the following after the word "carrier", in line 18, page 23, of S. 1119 (line 4, p. 26, of S. 308):

"However, any air contractor may make charter trips or perform any other special service for a department or agency of the United States Government, without regard to the geographical or other limitations on services authorized in its license, under regultions prescribed by the Board.”

5. To preserve military security, new section 452 (b), as proposed by section 21 of S. 1119 (sec. 24, S. 308), should be amended by adding, after the word "thereof", in line 3, page 29, of S. 1119 (line 18, p. 31, of S. 308), the following: "However, military contracts bearing a security classification will not be disclosed until released by the appropriate military contracting agency."

6. To prevent delay in the emergency utilization of contract airlift by agencies of the Department of Defense, and to insure that the Government will not be prohibited from renegotiating rates and charges contained in military contracts, it is recommended that section 452, as proposed by both bills, be amended by adding, after paragraph (d), line 8, page 30, of S. 1119 (line 22, p. 32, of S. 308), the following new paragraph "(e)":

"PROVISIONS RELATING TO MILITARY CONTRACTS

"(e) (1) Bids submitted to and accepted by the Department of the Army, Department of the Navy, or the Department of the Air Force for charter or contract service shall be filed in accordance with this section and its provisions shall apply thereto in all respects: Provided, That such service may be performed without regard to the provisions of this title in the event that a military emergency requiring such service is declared by the Secretary of the Army, Navy, or Air Force, respectively, and provided the time required for compliance with the provisions of this title would delay accomplishment of the military mission. An after-the-fact statement justifying such emergency action shall be submitted to the Board by the military Secretary concerned.

"(2) The provisions of sections 452 and 453 of this title shall not prohibit a renegotiation of rates and charges contained in military contracts, under such joint regulations as the Board and the Department of Defense may prescribe." 7. Since section 22 of S. 1119 (sec. 25 of S. 308) might, by substituting the term "air navigation" for "air commerce" in section 601 of the Civil Aeronautics Act, be construed to broaden the regulatory power of the Board, the following amendments are considered necessary to section 601 (a) of the Civil Aeronautics Act (as it would be amended by either bill):

(a) Section 601 (a) (1) should be amended by inserting, after the word "propellers", the following: ", other than aircraft, aircraft engines, and propellers of the national-defense forces of the United States,".

(b) Section 601 (a) (2) should be amended by inserting, after the word "appliances", the following: ", other than appliances of the national-defense forces of the United States,".

(c) Section 601 (a) (3) should be amended by inserting immediately after the word "appliances" in subsection 601 (a) (3) (A), the following: ", other than aircraft, aircraft engines, propellers, and appliances of the national-defense forces of the United States."

(d) Section 601 (a) (4) should be amended by inserting immediately preceding the word "required", the following: "other than reserve aircraft, aircraft engines, propellers, appliances, and aircraft fuel and oil of the nationaldefense forces of the United States,".

(e) Section 601 (a) (6) should be amended by inserting, immediately preceding the word "as", the following: "other than practices, methods, and procedures of the national-defense forces of the United States,”.

8. (a) Section 26 (a) of S. 1119 (sec. 29 (a), S. 308) would amend existing section 610 of the Civil Aeronautics Act by substituting the broad term "air navigation," in lieu of "air commerce," throughout the section, section 26 (b) of S. 1119 (sec. 29 (b), S. 308) would amend paragraph (2) of section 610 (a) of the Civil Aeronautics Act of 1938, as amended, by adding language designed to make subject to civil penalties any person who might serve in any capacity as an airman in connection with any civil aircraft, aircraft engine, propeller, or appliance used or intended for use, in air navigation without an airman certificate authorizing him to serve in such capacity. From time to time agencies of the Department of Defense find it to be to the best interests of the Government to contract with air carriers for essential and expeditious airlift. Such utilization of civil air carriers requires that civil aircraft land on military airfields for the purpose of loading and unloading. On occasions such civil aircraft so engaged have encountered mechanical difficulty while in flight or on a military airfield, and it has been determined that, in the absence of reasonably available civil repair facilities, it is to the best interests of the Government for essential emergency repairs to be made by personnel of the Department of Defense. Should such repairs not be made by Department of Defense personnel, delays of many hours or days can be expected in some cases-thereby defeating the purpose of utilizing civil airlift. The Department of Defense therefore feels that it is justified, and acting in the best interests of the Government, in making emergency repairs to enable expeditious completion of the civil airlift mission. Further, military airfields are in some cases designated as alternate airfields for civil 62505-55

aircraft in the event of difficulty, and certificated airmen are not available at such bases to make necessary repairs. Military personnel and civilian employees of the Department of Defense are not required, in the performance of their duties, to obtain the "airman certificate" referred to in the proposed amendment. Hence, the enactment of section 26 (b) of S. 1119 (sec. 29 (b) of S. 308) would confront such personnel with the dilemma of either violating its provisions should they perform emergency repairs, even under official military orders, or exposing themselves to possible disciplinary action if they fail to perform the repairs. In this connection, your attention is invited to the testimony of repre sentatives of interested Government agencies and industry, on an identical proposal, before the House Committee on Interstate and Foreign Commerce on June 24, 1954 (pps. 19-26, hearing before the Committee on Interstate and Foreign Commerce, House of Representatives, 83d Cong., on H. R. 6817, H. R. 6818, and H. R. 7394). In view of the foregoing, it is recommended that a subsection (d) be added to section 26 of S. 1119 (sec. 29, S. 308), to read as follows:

"(d) (1) Section 610 (b) of the Civil Aeronautics Act of 1938, as amended, is further amended by deleting the word 'Foreign' from the title; by renumbering the existing section '(b)' as '(b) (1)'; and by adding the following new paragraph (b) (2)':

"(b) (2) The provisions of subsection 610 (a) (2) and (3) shall not apply to military or civilian employees of the United States Department of Defense rendering mechanical, technical, or other assistance to civil aircraft, while in the performance of their official duties."

(b) The Department of Defense objects, basically, to any legislation which would give a civil agency the statutory authority to regulate military flying. Military aviation is an inherently hazardous activity which must be pursued in the interests of national defense. It regularly requires difficult flight maneuvers, formations, exercises, and attitudes as well as operation of aircraft at high speeds, high gross weights, and from unimproved landing areas; all of which have no parallel in civil aviation. Many of the normal necessary operations of military aircraft would probably be classified as careless or reckless operations should they be attempted or undertaken by civil aircraft. The Armed Forces have promulgated flight regulations to cope with the needs of military aviation, violations of which may be punished by courts-martial. The Department of Defense, of course, recognizes that, in the interests of safety in flight, certain uniform rules regulating the use of airspace by both civil and military aircraft should be prescribed. Accordingly, it is proposed that the following provision be added to section 26 of S. 1119 (sec. 29, S. 308), (as it would be amended by the amendment recommended in foregoing par. (8) (a) of this report):

"(d) (2) Section 610 (b) of the Civil Aeronautics Act of 1938, as amended by adding the following new paragraph (b) (3)'":

"(b) (3) a. The provisions of subsection 610 (a) (5) of this title shall not apply to military personnel or civilian employees of the United States Department of Defense while in the performance of their official duties relating to aircraft of the national-defense forces of the United States, except with respect to violation of any air traffic rule or regulation.

b. Nor shall the provisions of subsection 610 (a) (5) apply to military personnel or civilian employees of the United States Department of Defense operating aircraft of the national-defense forces of the United States while engaged in a military operation with due notice to the appropriate civil airways officer in the area concerned.

9. The new paragraph “(2)", proposed for section 1002 (h) of the Civil Aeronautics Act of 1938, by section 34 of S. 1119, should be amended by striking the period at the end thereof, and by adding after the word "contractor" (line 16, p. 42, of the bill), the following: ", or to renegotiable contracts with an agency of the Department of Defense."

10. Section 44 (b) of S. 1119 (sec. 47 (b) of S. 308) would repeal section 5 (f) of the Air Commerce Act of 1926, as amended, relating to the designation of routes in airspace as military airways. Inasmuch as certain routes are now designated as military airways, the Department of Defense objects to the repeal of this section because it might cast doubt on the authority to designate such military airways. It is recommended that section 44 (b) of S. 1119 (sec. 47 (b) of S. 308) be stricken from the bill.

Subject to amendment in the foregoing manner, the Department of Defense has no objection to either S. 1119 or S. 308.

The Department of Defense is unable to estimate the fiscal effects of the proposed legislation.