810.7962/1A Suppl.: Telegram

The Acting Secretary of State to the Chairman of the American Delegation (Hull)

78. The President asks me to send you his following suggestion:

“It seems good psychology to reinforce the excellent groundwork you are building up for future better commercial relations with South America, and which the press of this country are commenting upon most favorably, with some definite, concrete and immediate action in establishing better and more rapid communications which lie at the foundation of increased trade.

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Suggestion is that you offer in open session, in behalf of the United States, to create a non-profit making, semi-public engineering corporation financed by the United States, which will immediately proceed to erect along both coasts of South America the necessary radio stations, beacons and landing fields to make night flying possible, which will reduce time of flight for planes carrying 15,000–pound loads or more to 2½ days from Miami. Our air service engineers estimate total costs erection said stations, fields, both coasts at $5,000,000. The plan would be for the United States to provide engineers, material and employ local labor for these stations, beginning on work immediately. Company later to be reimbursed from a percentage of such fees for the use of fields and radio as may be agreed upon. Each country to agree to maintain fields and beacons under constant and proper unified supervision reimbursing themselves out of balance of fees charged by planes for their use.

If approved first step would be immediate appointment representative each nation, preferably engineer, to meet at once in United States with our engineers and to select sites and engage and order materials when approved.”

Cannot urge too strongly my personal belief that the psychology will have very stimulating effect.

Please make it clear the plan contemplates the making of each field and station and the equipment thereon, the property and under the sole jurisdiction and regulation of the country in which it is located, provided only that a joint board of inspection shall have power to insure that beacons are operated and fields kept in condition to insure safety of all planes using them.

The foregoing takes care of the situation mentioned in my 70, December 12, 7 p.m.37a

Phillips
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