810.79611 Pan American Airways, Inc./684
The Minister in Guatemala (Geissler) to the Secretary of State
[Received October 16.]
Sir: Referring to previous despatches relating to activities of the Pan American Airways, the Mexican Aviation Company and the Pickwick Airways, I have the honor to report on a conversation I had on October 3, 1929, with Mr. John P. Trippe, President of the Pan American Airways, during which there was an exchange of information bearing on the International Aviation situation in Guatemala, and at the end of which Mr. Trippe inquired whether I should be willing to support an application of the Mexican Aviation Company for a contract under which it would carry mail for the Government of Guatemala from the Capital to the Mexican border, that inquiry being answered by me by stating that in view of the fact that the Pickwick Airways claims that it has a contract with the Government of Guatemala under which it is entitled to carry all of the mail over that route in that direction, I should not, without going into the matter further, deem it appropriate to comply with his desire unless the Department of State, in better position to judge the situation in its larger aspects than I am, were to instruct me to do so, but that, responding to another inquiry he made, I am inclined, as I view the situation now, not to give, without instructions from the Department, aid to either party, if such an application is presented. Mr. Trippe then told me, during a short talk on October 4, that he believes, upon full consideration, that my position is sound.
I beg leave to relate the following details and additional features of that conversation.
Mr. Trippe arrived at the city of Guatemala on October 3, from San Salvador, by airplane, in company of Colonel Charles Lindbergh and left with him the morning of the 4th for Belize. Upon my invitation he accompanied us, when I went with Colonel Lindbergh [Page 596] to pay respects to President Chacon, the Undersecretary for Foreign Affairs, the Minister of Fomento and the Minister of War. At night he attended a dinner I gave at the Legation for Colonel and Mrs. Lindbergh. After dinner, Mr. Trippe expressed the desire for a private talk.
The President of the Pan American told about the Company’s contract with the United States Post Office Department. He said that it is desired, that the mail be carried between the morning and the night of the same day from Brownsville to the city of Guatemala; that he has the impression that the Department of State would prefer that the Pan American, being a company incorporated in the United States, operate on the south of the Mexico-Guatemala border in preference to its subsidiary the Mexican Aviation Company, a Mexican corporation, but that this would cause a loss of time, since, he said, it would necessitate the changing of planes at the border. Upon inquiries he stated, that the time required would be about an hour; that this would not necessarily prevent observance of the schedule but might sometimes do so and would be an inconvenience.
I said to Mr. Trippe, that, speaking frankly, as American to American, I should prefer to see operation of this service by a company of the United States: that, however, the Department of State is in better position to judge the situation in its larger aspects than I am; that I had complied with its instruction that I aid in securing permission for the Mexican Aviation Company to bring mail from Mexico to the city of Guatemala against strong opposition of the Pickwick Airways; that I do not mean to minimize the efforts of the representatives of the Mexican Company, nor the aggressive help it had from the Mexican Embassy, but that the President of Guatemala and the Minister of Fomento would undoubtedly tell him, if lie inquired of them, that they would have withheld that consent and the subsequently granted provisional license, except for the request I had made on behalf of the Department of State. I then went on to remark, that perhaps he had been advised by officials of the Mexican Aviation Company, in the beginning, that the Guatemalan Government would be more disposed to grant an aviation contract to a Mexican company than to an American concern. He said that such was indeed the case, but that he had since concluded that that was a mistake.
Thereupon I told Mr. Trippe, that two high officials of the Government (I was speaking of President Chacón and Minister of Fomento Daniel Hernandez) had recently given me the distinct impression, that they would much prefer to have the Pan American operate [Page 597] in Guatemala to having the Mexican Aviation Company, even though practically all of the latter’s stock be now held by the former.
I also mentioned to Mr. Trippe, that I had heard, that there is serious talk of the organization of a Guatemalan company, to carry on an aviation service from the Mexican border on south through Guatemala and other Central American countries and from the city of Guatemala to Puerto Barrios and Key West; that the leading promoter of that idea is a man who has good financial connections; that he proposes to ask the Government of Guatemala to levy a heavy tax on foreign companies receiving subsidies; that he claims that the President and the Minister of Fomento are disposed to support the project; that I consider that it is quite possible that the idea may be carried out; that this may conceivably prove annoying to the Mexican Aviation Company, and also to the Pan American directly in the latter’s effort to get a contract covering the territory south of the city of Guatemala, and that my personal opinion is, that it would be easier for the Pan American to defeat such a project, if it, instead of the Mexican Aviation Company, were operating between the city of Guatemala and the Guatemala-Mexico border. I added that, however, this is a purely personal opinion and must not in any way be regarded as a suggestion as to what he or his company should do, and that the opinion would hold even if somebody were American Minister here who does not share my personal preference for having that service operated by an American corporation.
In making to Mr. Trippe the statement set out in the first paragraph of this despatch, I had in mind the Department’s instruction No. 38 of July 12, 3 [6] p.m.,42 saying that the Legation should support in every proper way American companies which have been awarded contracts by the United States Post Office Department, in efforts to obtain privileges necessary for carrying mails to Guatemala in accordance with contracts with that Department and that the latter has stated that in rendering diplomatic assistance where concessions are involved to carry out the contracts it is desired that those contractors be given preference. However, obviously the Pickwick Airways, if the Pan American Airways asks for a contract to carry mail for the Government of Guatemala from the city of Guatemala to the Mexican border, may claim that this would be an infringement on its contract.
I shall be happy to receive such further instruction, if any, as the Department may desire to give.
I have [etc.]