814.796 Latin American Airways/8: Telegram
The Secretary of State to the Minister in Guatemala ( Geissler )
23. Your 57, May 7, 1 p.m. When the Department’s 21, May 7, 3 p.m. was sent it was not understood that both Latin American and Pan American Airways proposed to operate under Mexican charters in Guatemala.
The policy of the Department is not to interpose its good offices with foreign Governments upon behalf of corporations organized in or chartered by foreign countries to the end of securing for such corporations advantages by way of favorable treatment or concessions from such countries even though such corporations may be controlled by American stockholders, particularly where such corporations are in competition with American companies with American owned stock. A different situation and not necessarily subject [Page 639] to the same policy of non-interposition arises when American stockholders in foreign corporations suffer injury as the result of illegal or confiscatory measures taken by a foreign Government against such corporation. In the latter case the Department may under proper circumstances make appropriate representations. The distinction is between securing business and protecting property. However, the Department does interpose its good offices on appropriate occasions to assist American companies with American stockholders to secure business. You may therefore upon request appropriately assist Pan American Airways, an American company, stock of which is American owned, to obtain the right to connect Guatemala with its Miami–Panamá line.