The Bermuda Agreement (formally Agreement between the government of the United Kingdom and the government of the United States relating to Air Services between their respective Territories), reached in 1946 by American and British negotiators in Bermuda, was an early bilateral air transport agreement regulating civil air transport. It established a precedent for the signing of approximately 3,000 other such agreements between countries. The Agreement was replaced by the Bermuda II Agreement, which was signed in 1977 and effective in 1978. Background During World War II, transatlantic air service between Britain and America was limited to Boeing 314 flying boat service between Baltimore and Foynes, which Pan American World Airways had begun in July 1939. British Overseas Airways Corporation (BOAC) also flew the route using three Boeing 314s purchased from Pan Am. The Bermuda Agreement arose in the wake of the Chicago Conference of 1944, where the United States and United Kingdom disagreed about economic control of international air transport. The US and UK had generally agreed on the first two freedoms of the air (overflight and landings for repair/refueling) but the UK and several other countries refused to accept the US position on the third, fourth and fifth freedoms regarding the handling of passenger and cargo traffic. Specifically, the US sought the freedom for its carriers to determine capacity and frequencies on international routes, while the UK sought predetermined routes and an equal division of capacity between the two nations' carriers on those routes. Britain had lost much of its air fleet in the course of World War II and was reluctant to place itself in full competition with the stronger American air fleet. Prior to the Bermuda Agreement, the United States signed bilateral aviation agreements with several other European countries (Ireland, Norway, Sweden and Denmark), and had signed a multilateral Transport Agreement with several European and Latin American countries, but service to and from the United Kingdom had to be negotiated with the British government on an ad hoc basis. As of late 1945, the UK had limited transatlantic traffic by the US to 14 services per week, 500 seats per week and a minimum fare of $375. In July 1945, the US government granted Pan Am, Trans World Airlines (TWA) and American Export Airlines (shortly thereafter acquired by American Airlines and renamed American Overseas Airlines) the right to operate transatlantic service. American began its Douglas DC-4 service