810.71211/23

The Secretary of State to the Assistant Secretary of State ( White )

Mr. White: Your memorandum was brought up at Cabinet Meeting this morning and the procedure to the extent directed in the proposed telegrams to our representatives was authorized. I have accordingly sent the telegrams. In the discussion however the President made it rather clear that he did not think that the Post Office Department should from the fact that it had made a subsidy contract with one company for the west coast of South America interfere with the diplomatic support of another American company which proposed to go down the east coast and he did not think that the Pan American Airways Company, even if it crossed over the Andes from Chile to Argentina or elsewhere, should be permitted to block another American company which proposed to go down the east coast via Venezuela and Brazil to Rio.

H[enry] L. S[timson]