810.79611 Tri-Motors Safety Airways/42
The Ambassador in Brazil (Morgan) to the Secretary of State
[Received June 5.]
Sir: Referring to the Department’s telegraphic instructions Nos. 14, of April 30, 2 P.M.63 and 16, of May 16, 6 P.M.,64 and to Embassy’s telegram No. 18, of May 17, 12 N., I have the honor to report that when the Department’s telegram of May 16 was received it was already a fortnight since I had formally requested the Brazilian Government to permit three Sikorsky aeroplanes belonging to the New York-Rio and Buenos Aires Line Incorporated to fly over Brazilian territory and to land at the principal seaports, and that the Foreign Office had consulted the Ministers of Communications, War, and Navy, two of whom had already replied in the affirmative. It appeared, therefore, too late to recall my request, especially since permission to make such flights is always granted to foreign aviation companies and is not considered a privilege of high value. Should I have canceled my application, a fact which the representative of the Tri-Motor Safety Airways Incorporated would certainly have learned on the first occasion on which he should visit Rio, a charge of discrimination against Tri-Motor might have been raised, which discretion advises should be avoided.
Where aviation competition is as keen as it is bound to be in South America, it would be advantageous if foreign governments in the beginning would support not more than one aviation company of [Page 618] their nationals because if favors are distributed widely no one company will obtain the confidence of the foreign government in whose territory the company proposes to operate.
As already reported, the first State commercial hydroplane airport was recently inaugurated at Paranaguá in Santa Catharina. On the occasion of the inauguration a hydroplane of the Condor Syndicate in one day took a party of gentlemen from Rio de Janeiro to Paranaguá and returned, thus enabling them to be present at the ceremonies. In connection with the flight the representative of the Syndicate stated that with seven planes during the first quarter of 1929 his company had made 50 round trips between Rio de Janeiro and Porto Alegre; during these flights its planes had covered a total of 99,511 kilometers; in addition thereto 93 sight-seeing and experimental flights had been made; the total number of passengers carried was 475; the volume of postal correspondence being 20% greater than during the last quarter of 1928. So encouraging was the situation that on April 15 a new schedule went into effect under which three round weekly trips instead of two are made between this capital and Porto Alegre.
In spite of the success which the Condor Syndicate has gained, on account of financial difficulties in Germany and the diminution of the subsidy received from Lufthandle the Syndicate is inclined to reduce its Brazilian interests, and has approached informally the Pan American Airways Incorporated to inquire whether the latter would be interested in entering into an accord. If in addition to its international service the Pan American Airways should wish to establish a local service within Brazilian territory, the Condor Syndicate’s plant and good will might be advantageously employed.
I have [etc.]