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

821.796 Avianca/125a: Telegram

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

Washington, June 15, 1940—5 p.m.

112. We believe it would be desirable for you to take an early opportunity in informal conversation with the President to express our gratification over the establishment of Avianca and our appreciation of the cooperation of the Colombian Government throughout the negotiations, et cetera, incident thereto.⁵⁵ Unless you perceive objection, I believe that opportunity could also be taken for a discussion with the President of the obvious desirability of his Government’s according wholehearted support to Avianca as the national air line of Colombia and consequently of discouraging the establishment or development of any other Colombian or allegedly Colombian domestic lines, whether or not they appeared to offer immediate competition to Avianca. Having in mind the Arco⁵⁶ situation, the fact that former Scadta employees have received very considerable cesantia⁵⁷ payments, the current trip of Schnurbusch⁵⁸ to the United States, et cetera, there is obviously the possibility that former Scadta pilots or their associates may endeavor to rejuvenate Arco or to establish other local lines on terms ostensibly very favorable to the Colombian Government.

We have no reason to believe that the Colombian Government fails to see eye to eye with us regarding this problem and of course assume that the Government having the potential dangers clearly in mind is fully prepared to take the necessary measures. For our part we consider the proper development of Avianca as a genuinely Colombian company to be of continuing national defense importance.

Hull

55. Pan American Airways had publicly announced on June 11, 1940, the consolidation by stockholders’ action of the Scadta and Saco air lines in Colombia; the formation of Avianca. The Colombian Government received immediate control of the latter company and a purchase option on a majority of the stock. Pan American Airways was the principal minority stockholder and assumed responsibility for the technical staffing of the organization. (New York Times, June 12, 1940, p. 10; ibid., June 17, p. 6.)

    German personnel were dismissed from Avianca only when opportune and as competent substitutes became available. The replacement program spread as it was over a period of more than 6 months was of continuing concern to the Embassy at Bogotá and to the Department. Discussions over the issue were only between officials of Avianca and Pan American Airways and the Department. There was no correspondence between the American and Colombian Governments. (821.796 Avianca/182, 188, 191, 197, 203, 231.)

56. See footnote 52, p. 733.
57. A form of unemployment compensation insurance.
58. William Schnurbusch, a former employee of Scadta.