810.79611 Pan American Airways, Inc./460: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received June 7—2:30 p.m.]
86. It appeared yesterday in a conversation between representative of Pan American-Grace Airways and Director of Aviation in the Ministry of War that a proposal has been made by the representative of the Curtiss Aeroplane and Motor Corporation which the director used as an excuse for holding up the concession to the Pan American-Grace Airways. This proposal is to organize a Chilean company which will not only operate the local air service within Chile but will also establish an aviation repair and assembling plant and school. Director of Aviation argued that this proposal offered Chile full power and he proposed among other things that the Pan American-Grace Airways deliver mail and passengers for intermediate points to the Chilean line at Arica for which the former would pay the latter and that it fly direct from Arica to Santiago and beyond. It would appear that the Curtiss Company has made a proposal appealing to the national prejudices of the Ministry of War and that it may be used to hamper if not defeat the project of the Pan American-Grace Airways.
Before I see the Minister of War, will the Department please instruct me concerning my attitude towards the Curtiss proposal? Will I insist upon the right of Pan American-Grace Airways to deliver at points between Arica and Santiago international mails, as provided for in its contract with the United States Post Office?
[Paraphrase.] I believe that the activities of any American company should be opposed at any point where they interfere with the fullest development of international air ways as contracted for between the Post Office Department of the United States and the Pan American-Grace Airways. [End paraphrase.]