821.796 Avianca/54: Telegram

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

28. Department’s telegram No. 25, February 5, 4 p.m. Rihl this morning delivered to Ministers of War and Finance two letters summarizing principal features of 51% plan. Remaining points thereof, such as amount to be paid by Government for stock, cannot be settled at earliest before end of this week or early next week because Rihl left this morning for Barranquilla to take steps contemplated second paragraph of my telegram No. 21, February 2, 1 p.m.42 and to relegate Schnurbusch43 to purely advisory position. It is encouraging that the Ministers, when informed of these steps by Rihl last evening, though shocked by 130,000 peso salary and discharge allowance which will have to be paid to these two Germans, did not raise any objection.

Only alternative to 51% plan suggested by Colombian Government has been 100 per cent purchase which, as indicated in my telegram No. 16, January 29, 11 p.m.44 involves far greater danger from defense aspect. … From viewpoint of defense, this plan compares as follows with the seven-point program described in my No. 106, October 25, 8 p.m.45

(1) and (5).
Pan American Airways’ personnel scheduled to begin taking over tomorrow. General Managership will be left for a Colombian but Rice, until recently Pan American Airways’ general manager [Page 730] in Rio de Janeiro and though without the title, will in effect be general manager while training Colombian successor.
(2) and (3).
As soon as radio equipment mentioned in my telegram No. 3, January 5, 11 a.m.46 arrives this part of program should become effective. Moreover, this week Naval Air Attaché to this Embassy will in detail examine this phase of defense program with Pan American Airways experts and, if he deems it necessary, Rihl agrees additional operators must be installed.
(4)
One of four American pilots has left but if later DC–3’s are purchased more can probably be employed.
(6)
It does not appear possible now to get rid of German clerks as rapidly as at first contemplated.

In short, supervision by American personnel on foregoing basis appears adequate at least to render it difficult for any plane to deviate from scheduled route without knowledge of American ground personnel. Von Bauer is already eliminated, Kuehl and Schnurbusch will this week be shelved, Tietjan47 will go shortly and Boy48 may be less dangerous in innocuous position within organization than he would be outside disgruntled and a martyr. This may also apply to German chief pilot.

. . . . . . . . . . . . . .

As indicated in my February 1 letter to Duggan49 I consider it imperative to remain here until this problem is as completely and satisfactorily solved as possible when I will request the Department for travel instructions.

Department’s No. 22, February 4, 2 p.m. I am gratified there has been no further newspaper comment on press stories excepting in last night’s El Espectador. Minister of War denied any undue delay in negotiations.

Braden
  1. Not printed.
  2. Technical Director of Scadta.
  3. Not printed. Under the 100 percent purchase plan, the Ambassador felt that the Colombian Government would “turn to Germans for technical management.” (821.796 Avianca/45.)
  4. Not printed. The program, concerned with the process of “de-Germanizing” the Scadta organization, provided for: Pan American Airways experts to take over key administrative posts; PAA to assume control of all radio operations; pilots to consist of 4 American and 3 Colombian chief pilots, and 10 Colombian copilots; Germans to be removed from mechanical and clerical posts. (821.796 SCA 2/476.)
  5. Not printed.
  6. Albert Tietjan, a founder of Scadta, vice president, and elected acting president on January 23, 1940. He resigned at a meeting of Scadta stockholders on February 23, 1940.
  7. Colonel Herbert Boy, operations manager of Scadta, who also resigned on February 23, 1940.
  8. Not found in Department files.