The Archive · 1938

Link with Defence Needs

The Committee recognize, and the Government agree, that the civil and military aspects of aviation cannot be fundamentally separated. The unprecedented effort the Air Ministry recently had to make in the military sphere has necessarily created the impression that civil aviation has received less attention than is right, but the Government feel that it is now possible to make further efforts to assist civil aviation and substantially te improve its organization.

The Government agree with the Committee's recommendations on the organization and management of Imperial Airway The Government have consulted with the Company and are informed that it welcomes the suggestion that a full-time Chairman should be apt Pointed by the Board in agreement with the Government.

The Committee thought that it Wwculd be proper. in the case of subsidized air transport companies, for dividends to be restricted to the limits usually associated with public utility companies, and the Government express sympathy with the principle underlying this proposal and will consider means-of.giving effect to it The reorganization at the Air Ministry resulting from the Committee's recommendations and the The most important of the decisions reached by the Government on the recommendations of the Committee relate to an increase of expenditure on civil aviation, and the allocation of external routes between Imperial Airways and British Airways.

Other decisions affect the administrative reorganization of these companies and measures to strengthen the civil aviation organization within the Air Ministry as well as matters of research and development, including the recommendations of the Maybury Committee.

Government's decisions on the matter include 1, Appointment of a Permanent Under-Secretary of State for Air to exercise general administrative direction in civil aviation matters and to ensure a full and constant ce-relation

ion.

the policy of civil and military avia-2. Appointment of a Deputy Director-General of Civil Aviation, and 3. Appointment of a Director of civil research and production.

It is understood that Col. Sir Donald Banks, Permanent Secretary of the Air Ministry, will be appointed to the post of Permanent Under-Secretary of State for Air. Sir Francis Shelmerdine will continue as Director of

Text read from the printed page and cleaned; old type leaves the occasional error.

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