The Secretary of State to the Ambassador in Argentina ( Armour )
721. Your 1048, September 27, 4 p.m.57 Department is, of course, anxious to prevent the re-establishment of Air France either as a trans-Atlantic service or in the event Brazil continues to refuse it a permit, as a local service operating between Argentina, Uruguay, Chile, and so forth. It would seem that Air France may be endeavoring to start an interior service in South America as a talking point in obtaining permission from Brazil to base its trans-Atlantic service there.
Do you believe there is any possibility that the Argentine Government would revoke Air France’s operating permit on the ground that it has not and is not likely to establish trans-Atlantic service. For your information, Panagra in October will establish a fifth frequency between Buenos Aires and Santiago and in the near future expects to provide daily service between these points. This, coupled with the arrangement which the Reconstruction Finance Corporatión hopes to conclude for the strengthening of Argentine aviation,58 should make Air France’s proposed operation superfluous.
With respect to gasoline and ethyl stocks, Standard of New Jersey says YPF is negotiating with Lati for 100,000 litres per month of 87 octane gasoline. Roberts, South America representative of Ethyl Gasoline Corporatión, says YPF has a stock of about 4,000 gallons of lead, enough to lead 2,700,000 gallons of gasoline at 3 c.c. per gallon. Please check.