810.79611 Pan American Airways, Inc./461: Telegram

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

87. Department’s telegram number 61, May 31, 2 p.m. I have conferred twice with Director of Posts who frankly says that Minister of War has final say in aviation even in air mail contracts and that therefore he is not in a position “politically” to complete arrangements with the United States Post Office. I will see the Minister of War next Friday and will endeavor to obtain his acceptance of the proposal made by the United States Post Office in its cablegram to the Chilean Post Office May 29th.

The Minister of War proposes that the contract for carrying northbound mail be made directly with the company on the theory that he can hold it responsible. In case he insists upon this position, would our Post Office contract directly for the mails north of the Canal Zone only and permit an indirect arrangement through the Pan American-Grace Airways to contract with Chilean Post Office for mail from Santiago to the Canal Zone at rate asked by United States Post Office?

Culbertson