814.796 Latin American Airways/5: Telegram

The Secretary of State to the Minister in Guatemala ( Geissler )

21. Your 54, May 2, 4 p.m. Financial backing Latin American Air Transport Company is understood to be good but operating capacities have not been demonstrated. The original plan to have Boeing take over operation under its option appears to have been definitely abandoned due to alignment of Boeing with Pan American through Aviation Corporation of America, and the Department is not yet informed as to what other operating arrangements if any have been made. However, assuming that it is the intention to establish operations in some satisfactory way and not merely to trade off the concession, the Department sees no reason why you should not continue to support the Latin American Air Transport Company as a reputable American concern, and since it was the first in the field such action could not reasonably be interpreted as discrimination against others of similar standing. It would of course be most unfortunate if the efforts of competitors should result in the exclusion of all American interests and the Department desires you to use your best efforts to prevent any such development.