822.796/244a: Telegram

The Secretary of State to the Minister in Ecuador (Long)

152. In conference today with the Department, Panagra officials agreed to the following plan, the various phases of which will be undertaken concurrently as far as possible:

Inauguration of a weekly service from the Canal Zone to Cali, Quito, Esmeraldas, Manta, Salinas, Guayaquil and return, as soon as approval of Civil Aeronautics Board, Post Office and Ecuadoran Government is obtained. Applications should be acted upon by the United States departments in time to permit service to begin within a few days.
Panagra will also serve Cuenca and Loja and will, if necessary, purchase special type aircraft (such as Lockheed Model 10–E) for this service. Panagra will send plane to Ecuador at once to survey routes, airports, and other facilities and will proceed immediately to carry out entire program. Operating personnel and equipment will [Page 846] be regularly quartered in Ecuador. Further indication as to date when service can be established will be furnished you in the next few days.
Panagra will immediately undertake in cooperation with the Ecuadoran government such enlargement and improvement of the airports at places mentioned as may be necessary or desirable. Panagra airport engineer is now in Ecuador making survey for this work.
Panagra will immediately undertake negotiations with the Ecuadoran government for the establishment of a national company for the purpose of taking over the interior services in Ecuador.
Panagra agrees to the principle of providing a low-cost passenger and freight service which will meet the needs of Ecuador.

The foregoing has been read to and approved by Mr. Roig20 and Mr. Harris.21 Please communicate to Campbell as well as to Foreign Minister.

  1. H. J. Roig, president of Pan American-Grace Airways.
  2. Harold Harris, a vice president of Pan American-Grace Airways.