The Minister in Ecuador ( Long ) to the Secretary of State
[Received October 27—8:10 p.m.]
248. Vidal22 arrived here Thursday. He and Colonel Flores Guerra23 saw President Friday. This morning applications for passenger, express and mail internal aviation service were approved and permits granted.
Monday Vidal hopes to have received reports regarding present condition of all the air fields to be served. Information regarding each will then be cabled New York and service will be inaugurated to points having airports upon receipt of instructions from Panagra.
Meanwhile a situation has arisen that may make difficulties. Sedta has submitted contract to carry all Ecuadoran mail by air up to 250 kilos per trip (also to increase the number of trips) for about $2,000 per week and estimates attached to draft contract that a profit would become available to the Government on this service. Vidal is cabling details to his people and requesting permission to make a proposal…
Should Panagra, New York, authorize and Vidal make air mail proposal and Ecuador decline, then it would be necessary to go more deeply into this problem. Sedta air mail negotiators are proving themselves very skillful. Details Sedta proposed contract were obtained secretly and we are requested to avoid mention thereof to Alfaro, at least for the present.