Foreign Relations of the United States Diplomatic Papers, 1940, The American Republics, Volume V

821.796 Avianca/52: Telegram

The Ambassador in Colombia ( Braden ) to the Secretary of State

Bogotá , February 4, 1940—5 p.m.
[Received 9:28 p.m.]

24. For Duggan.³¹ My telegram No. 21, February 2, 1 p.m.³² No definitive action can be taken to change bylaws for probably another 15 days, hence February 7 stockholders meeting will only take such action as will enable Rihl to put through two steps mentioned in my telegram under reference.³³ Nevertheless, Rihl may have practically to commit himself to 51% plan tomorrow morning.

Negotiations on 51% plan have so far progressed sufficiently satisfactorily to warrant a hope that Von Bauer³⁴ or other naturalized Colombians and Germans will be excluded from all representation on Board of Directors, that Avianca will have a commercial management by Colombians, guided by personnel from Pan American Airways, excluding Germans from key positions and that administration will be as free from government intervention as possible under the circumstances. …

… provided the first three points of my telegram No. 3³⁵ can be put in effect, we will within present limitations be on the way towards Canal safety on a basis comparable to, though less satisfactory than, that contemplated in the seven point program of my telegram No. 106, October 25, 8 p.m.³⁶ But under best of circumstances we will have to rely on patriotism, intelligence and discretion of Panair’s American personnel and on their being retained by Avianca after control passes to Colombian Government and individuals. In this connection it may conceivably become necessary for Panair to loan these men to Avianca free of charge.

Braden

31. Laurence Duggan, Chief of the Division of the American Republics.
32. Not printed.

33. The two steps were: (1) Dismissal of Herman Kuehl, general manager of Scadta, or his demotion to the harmless status of adviser; (2) transfer of Pan American Airways personnel at Barranquilla to positions from which they could supervise Germans not discharged immediately. (821.796 Avianca/49)

    Kuehl resigned on February 7, 1940, and became an administrative adviser. (821.796 Avianca/59)

34. Peter von Bauer, formerly president of Scadta.
35. Not printed; the three points referred to dismissal of executive and operations personnel, and special communications precautions.
36. Not printed; the seven-point program was solely concerned with the process of “de-Germanizing” the Scadta organization.