810.79611 Pan American Airways, Inc./738
The Chargé in Guatemala (Hawks) to the Secretary of State
[Received December 4.]
Sir: With reference to the Department’s cablegram No. 71 of November 18, 3 p.m. authorizing the Legation to support the request of the Pan American Airways, Incorporated for an air transport contract in Guatemala, providing that it did not conflict with any existing contract or pending applications of other American Companies, I have the honor to report that after discussing this matter with Commercial Attaché Bohan, it was decided that due to the apparently exclusive air mail contract of the Pickwick Airways, Incorporated it would be impossible for the Legation to support the Pan American Airways in its desire for an air mail contract, but that, with this exception, the Legation could support the latter Company without conflicting with the rights of the former.
On November 20, I called upon the Minister of Fomento, Colonel Daniel Hernández, and afterwards upon President Lázaro Chacón and discussed with them the desire of the Pan American Airways, Incorporated to enter into a contract with the Government of Guatemala for the establishment of an air transport service between Guatemala and the United States and between Guatemala and the Panamá Canal Zone, pointing out clearly to both of these officials that the Department of State was only supporting the application of the Pan American Airways, Incorporated and not of its non American subsidiary.
[Page 608]The Minister of Fomento said that he objected to granting the Pan American Airways a contract between Guatemala and Mexico via Mariscal, as this would mean the death of the Pickwick Airways, and that he desired that the Pan American enter Guatemala from Miami via Belize and the Petén and that the Pickwick Airways use the route through Tapachula and Mariscal. I stated that the Legation was in no way trying to work against the Pickwick Airways but that as the Government of the United States had granted an air mail subsidy to the Pan American Airways, naturally it desired to support that Company. Colonel Hernández said that he would be glad to receive Mr. Carlos Salazar, attorney of the Company, to discuss this matter and would also take it up with the President. From the conversation with Colonel Hernández, I received the distinct impression that he was absolutely opposed to the Compañía Mexicana de Aviación operating in Guatemala and only slightly less opposed to the Pan American Airways being granted a contract to operate over the same route as the Pickwick Airways.
President Chacón told me that the application of the Pan American Airways would be given every consideration, provided, of course, the terms of the proposed contract were favorable to Guatemala. I remarked to the President that I thought that the Minister of Fomento was against granting the Pan American Airways a contract over the same route as the Pickwick Airways. He replied that, if the proposal of the Pan American Airways was a good one from the viewpoint of Guatemala, it might be accepted whether Colonel Hernández liked it or not. He added that it would be in the Company’s favor if it offered better terms with regard to mail, passengers et cetera, than those granted by the Pickwick Airways. I told the President that I would bring this point to the attention of Mr. Morrison. This was the only mention made, in either of the two conversations, of the question of carrying mail, as I referred to the whole matter as a question of air transport. From my conversation with the President, I gathered that he will receive favorably the proposal of the Pan American Airways and that, if the Company gave him some points of argument, as for example better rates, he will be inclined to overrule the opposition of the Minister of Fomento. However, this does not necessarily mean that he will do so.
I informed Mr. Morrison of the substance of the above conversations and he said that Mr. Salazar would go immediately to see the Minister of Fomento, after which he would request an audience with the President.
I have [etc.]