832.796/245: Telegram

The Chargé in Brazil (Burdett) to the Secretary of State

557. Reference telephone conversation with Department yesterday afternoon and Embassy’s telegram number 512 of October 6. The background relating to the possible allocation, after November 1, by the Brazilian Government, of Syndicato Condor air line schedules to Panair do Brasil as given to the Embassy by the Director of Civil Aeronautics is as follows:

On October 6 the Department of Civil Aeronautics ruled that foreign born pilots were excluded from flying airplanes of Brazilian registry. At that time Condor requested an extension of several weeks in which to comply. This was granted. Recently Condor requested a further extension on the grounds that it did not have sufficient trained native-born Brazilian pilots to carry on its schedules. Condor’s present complement of pilots is 10 Brazilian born and 5 German born.

Brazilian air lines are doing capacity business with bookings sold out long in advance and there are already difficulties due to lack of equipment in maintaining present schedules. The director feared that Condor might threaten to suspend some of its schedules if he refused this extension (which he felt would be resented by the public unless provision had been made for their replacement). He therefore communicated with Commander Cortez, assistant operations manager of Panair, and requested him to ascertain from the management whether it would be in a position to take over one of Condor’s Rio de Janeiro-Buenos Aires schedules or for that matter any schedule which Condor might threaten to discontinue if the native born pilots rule were enforced. The director stated that Cortez subsequently assured him that Panair would be in a position to take over any of Condor’s schedules which might be suspended.

As matters now stand the director plans to give Condor his official decision over the weekend. He has promised to keep the Embassy informed concerning developments.