Feb 18th, 1936:
Field Marshal Silvestras Žukauskas looked blandly across the table, at Vice-Admiral Antanas Kaskelis, as the naval officer finished reading the memo from the ministry of foreign affairs. Kaskelis fiddled with his pipe for a few minutes, to give himself time to think.
"I don't see how this concerns us, Silvestras. It seems straightforward enough."
"Actually it does, concern the military after a fashion, Antanas. Admittedly, the formation of a Lithuanian national airline, doesn't seem a major feature, but it is important to Lithuania's long term prosperity and it has long term implications to our military development. Further, Presidet Grinys, would appreciate our support in cabinet and in the Seimas, when the matter is considered."
"How?" Kaskelis, said questioningly, tugging thoughtfully on his long, snow white beard.
"The Lietuvos Avialinijos, will be funded by a loan advanced by the Parisian Banque de Paris et des Pay Bas to the Lithuanian government. Effectively, the government will be partners in Lietuvos Avialinijos, with both the Banque de Paris, and Aeroflot. The capital will be provided under a ratio of sixty-twenty-twenty: the Banque de Paris providing that sixty percent under a low-interest low, while Aeroflot provides the other twenty percent financing."
"And Lithuania picks up the remaining twenty percent." Kaskelis, looked pensive for a long moment.
"That is still a sizeable finacial committment given current reconstruction plans, can the government afford it?"
"Yes, and no." Field Marshal Žukauskas responded leaning back in his chair, one hand tapping the table top to emphasis each point. "My understanding is that the Ministry of Finance is willing to ante up 10%, while the remaining 10% will be filled up by private commercial investors."
"In the meantime, Aeroflot, will assist us in the capacity of a non-finacially contributing partner, thereafter, and will use the startup capital to cover the aquistion of aircraft and the rebuilding of the Vilius airport, which will be the airline's primary headquarters and basing facility."
"What are we getting in terms of aircraft?" Vice-Admiral Kaskelis asked, returning his attention to the memo.
"Four Bloch MB.220 airliners, transferred from Aeroflot, they will be repainted in Leituvos Avialinijos livery: a special dark green colour scheme with gold pinstriping. Technically they are still owned by Aeroflot, until such time as the government can formally purchase the airliners. Aeroflot is committed to providing the necesary technical personel to train the company's pilots and ground crews under the terms of the proposal."
"Hm. I see. What of these two following proposals from Bloch and Arsenal de l'Aeronautique?" Kaskelis shot back, looking up from the memo again. Žukauskas nodded again, and almost smiled in response.
"Ah, both of these concern, the Army Aviation Workshops in Kaunas. General Antanas Gustaitis has done wonders modernizing it during his tenure, as the air service commander, but there are limits to his resources."
"Arsenal de l'Aeronautique has made an offer to assist us, in an overhaul of the current aviation workshops, particularly the ANBO Design and Construction bureau's facilities within the Workshop. Further, Arsenal, is willing to allow us, to construct their VG-series fighter aircraft under licence."
"Bloch's offer is rather more comprehensive, however. Given the option I'd recommend it strongly to the government's consideration over the Arsenal offer."
"How so?" Kaskelis asked curiously, while puffing thoughtfully on his pipe.
"Bloch is willing to offer a bid for modernizing ANBO fully into the modern era. They've offered to construct a whole new manufacturing facility, a maintaince facility, and access to practically all licence-built Bloch designs. The maintaince group will also provide the welcome bonus of helping service the MB.220 airliners."
"An impressive offer, the French ambassador, has endorsed this, I'd imagine?" Kaskelis said after turning the matter over in his mind for several minutes.
"No, he hasn't." The field marshal, replied, his expression, carefully neutral, while his words were delivered in a deadpan tone. "This offer was transmitted to the Lithuanian government, via the French Consul in Kaunas. Which is to a great extent right and proper: as the consular service does handle trade and industrial matters."
"In any event, Consul Cedric Moniotte, is a loud, pushy fellow, the sort who gets things done - and in a manner where one wants to do continued business with him. Consequently, he's more then made up for the french ambassador's lack of activity."
"Is Moniotte, a Parsisian?" Kaskelis asked wryly.
"No, provincial if his accent and manners are anything to go by, Normandy, or perhaps Brittany I should think." Field Marshal Silvestras Žukauskas, remarked with an equally wry expression.
"Why isn't the french ambassador doing this? I mean, the offer must have the blessing of the French government?"
"It does, however I have the impression that, the Ambassador Honore Auclair, is well scared that the whole affair might blow up in his face."
"Whatever for?" Kaskelis asked startled. "Things have quieted down, the Stockholm protocals are being enacted and we're making real headway at reconstruction in the disputed districts."
"That's the point, Antanas. Auclair is jittery over the mere hint of another flashoff - things could get awkward if fighting flared up again, and it looked like France was helping us militarily. The diplomatic reprocussions, particularly with our neighbours Germany and Poland for instance, would be profound particularly with public sentiment in the later country."
Vice-Admiral Kaskelis scowled at the last comment, then nodded with understanding, if ill grace.