810.79611 Pan American Airways, Inc./706

The Chargé in Chile (Lay) to the Secretary of State

No. 298

Sir: Referring to the Embassy’s despatch No. 281 of September 21, 1929, enclosing copy of a note to the Minister of Foreign Affairs, No. 259 of September 20, relating to the difficulty encountered by the Pan American Grace Airways, Inc., in obtaining permission to extend their international airmail route from Santiago to Buenos Aires, I have the honor to report the more recent steps that have been taken by this Embassy and the representatives of the Company here to enable it to start the extension of this service.

On October 1 the representative of the Pan American Grace Airways, Inc., here addressed a letter to the Director of Aviation announcing that his Company would inaugurate on October 12 the extension of its service to the Argentine and that this service had already been announced by the United States Post Office. To this letter a reply was received on October 5 (translation of which is attached herewith as Enclosure No. 1)44 informing the Company’s representative that only provisional permission is granted to make the first flight to Buenos Aires and that “subsequent flights will only be effected by virtue of a permission which will be studied more at length.”

Inasmuch as no reply had been received to the Ambassador’s note of September 20, on October 7 an informal communication was addressed by Mr. Culbertson to the Minister of Foreign Affairs,—five copies of which are enclosed (Enclosure No. 2),44—stating that the condition could not be accepted that the Pan American Grace Airways, Inc. must request special permission in the case of each flight with the international mails to and from the Argentine, and that it was important to know immediately whether these mails will be permitted to continue from Santiago to Buenos Aires according to schedule.

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Supplementing this letter, Ambassador Culbertson called on October 7 on General Blanche, the Minister of War, who controls aviation in Chile when the latter was reminded that freedom of transit of international airmails was granted by international conventions accepted by both Chile and the United States, and after reiterating the statements made in the enclosed note, the Ambassador urged that permission should be granted immediately to the Pan American Grace Airways, Inc. for the transport of international mails to and from Argentina and Chile not only for the first flight but that these mails should move regularly without encumbrance.

On the following day, October 8, the Ambassador received an informal letter (translation herewith as Enclosure No. 3)45 from the Minister of War stating that “there is no objection on the part of the Government to authorize the Pan American Grace Airways, Inc. to fly to the Argentine Republic by way of Uspallata for the purposes of carrying to that country the international correspondence which the Company may bring via the Pacific”, and that, “the provisional authorization … will be formalized, as is customary, by means of a Supreme Decree and in accordance with the provisions of said Decree No. 2001 which governs general permissions”.

The Pan American Grace Airways, Inc. have brought an electrical expert from the United States at their expense to advise the Chilean Government on lighting for night flying and the Company proposes to contribute to the cost of the installation of lighting the airport of Arica. I believe when an understanding is reached as to the extent of the Company’s contribution towards aërial navigation in Chile, the present unsatisfactory decree under which the Company is now operating, will be modified and in the revised decree the extension of the service to the Argentine will be more specifically and definitely provided for.

I have [etc.]

Julius G. Lay
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