810.79611 Pan American Airways, Inc./454: Telegram

The Secretary of State to the Ambassador in Chile (Culbertson)

61. Your 80, May 16, 11 a.m. Please be guided by the following letter from the Post Office:

“This Department has made a contract with the Pan American-Grace Airways to carry the mails by aircraft from Cristobal, by intermediate points, to Santiago, and return, with the right to extend the route to Buenos Aires and Montevideo.

In order to provide service for carrying mails from this country and the Canal Zone outbound, it was necessary for this Department to pay the contracting company the cost of operating the aircraft back to the starting point. The contract calls for payment of $1.80 a mile for the flights outbound and return, for the transportation of such mails as may be dispatched up to 800 pounds, and for pay at pound rates for excess mails should more than 800 pounds be carried.

Since it was necessary for us to pay for operation of the airplanes on return trips and since it was considered very desirable to provide for a free exchange of mails if possible, that is, a return of correspondence to the Canal Zone and to this country as well as the dispatch outbound, the contract was made to cover the transportation of all mails to and from the United States and its possessions. The contract was so made with the hope that arrangements could be made with the several postal administrations for return of such air mail correspondence as they may have for dispatch to the Canal Zone and points beyond at reasonable pound rates.

The Postal Administration of Peru has found it agreeable to make such arrangements, and it may be stated that the arrangement for transportation of correspondence in this manner is not very different from arrangements that are made under postal conventions for carrying mails for other countries by steamships, where the service is provided by the government of a particular country.

[Page 560]

Since it is necessary under our contract for this Department to pay the Pan American-Grace Airways for operating the planes on return trips, it is hoped that the Chilean Administration may see its way clear to accept service for the dispatch of its air mails to the Canal Zone and points beyond as well as receive mails from this route, under arrangement with this Administration, as proposed.

It may be stated that service for the exchange of local mails with intermediate countries on the route may be arranged with the Pan American-Grace Airways.

It is requested that the Ambassador present the facts to the Chilean authorities in the hope that upon further consideration of the matter in the light of the circumstances set forth above, the Chilean Postal Administration may see its way clear to utilize under arrangements with this Department the return service for the dispatch of its mails to the Canal Zone and beyond, as well as to accept delivery of mails dispatched by the southbound service. The good offices of the Ambassador to this end will be appreciated.”

Stimson