The State Department reluctantly laid down a policy last week for U.S. airlines operating in ex-enemy nations. The policy, over which State has hemmed & hawed for weeks, was forced out by the squabble between Transcontinental & Western Air, Inc. and the British Government. Nub of the dispute: control of Italy's internal airlines.
Last winter T.W.A. signed a contract with the Italian Government under which a new company, Linee Aeree-Italiane Società Perazioni was to get an exclusive franchise to fly internal air routes: T.W.A. was to get a 40% interest in L.A.I. The British demanded that T.W.A. share its interest...