810.79611 Pan American Airways, Inc./605: Telegram
The Minister in Guatemala (Geissler) to the Secretary of State
[Received 10:40 p.m.]
106. Referring to Department’s telegram of August 7, 3 p.m. Legation’s despatch of August 1330 reported receipt of a cablegram from Balch announcing transfer of Guatemala aviation contract from Latin American to the Pickwick Airways, a Delaware corporation.
About August 13th, Morrison, traffic manager of the Mexican Aviation Company, arrived in the city of Guatemala. On the 17th he asked me to receive him this morning for a conference. Today he telephoned postponing the conference pending an interview with his lawyer.
This evening the local representative of the Pickwick-Latin American Airways presented to the Legation a communication alleging that it is incorporated under American laws and owned by Americans; that it has been operating a regular mail service between Guatemala and Mexico since August 7th in accordance with its contract with the Guatemalan Government obtained “before the Compañia Mexicana de Aviacion even applied for such a concession”; that the Compañia Mexicana “through the efforts of the Mexican Embassy is endeavoring to obtain permission from the Guatemalan Government to operate on our route and bring mail from the United States”; that the Compañia Mexicana “irrespective of the nationality of its present stockholders is a Mexican Company, incorporated and operated under the laws of Mexico”; that “common sense and business judgment repudiate the idea of operating two air lines over exactly the same route”.
He says that “I do not hesitate to state that my company will undertake the carrying of United States mails from the Guatemalan-Mexico border to Guatemala City on the same terms as the Compañia Mexicana de Aviacion”. He protests “against the machinations of [Page 579] Mexican elements against our legitimate rights obtained through considerable expenditure of time, money and labor” and requests the Legation’s “support and protection against such intrigues by opposing the granting of permission to the Compañia Mexicana” to bring United States mail to Guatemala City.
It is doubtful that Fomento would at present grant a request for the Mexican Aviation Company to fly a route in Guatemala substantially paralleling the Pickwick Airways except perhaps upon an official request made on behalf of the Government of the United States.
See despatch No. 2480 June 27th.31
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