835.796/200: Telegram
The Secretary of State to the Ambassador in Argentina (Armour)
974. Your 1169, October 21. Panagra will establish a daily service on a permanent basis between Buenos Aires and Santiago which will be in effect November 25 eastbound and November 26 westbound.
You are requested to notify the Argentine Government that Panagra is establishing the additional frequencies at the request of this Government in order that there will be no reduction in air services between Buenos Aires and Santiago when Condor no longer operates between those points.
You may also say that since the daily service will be equal to the present frequencies of Panagra and Condor combined, the United States oil companies concerned are being instructed to furnish no more gasoline to Condor for the Santiago-Buenos Aires run as soon as Panagra’s daily service is in effect.
For the time being, the oil companies will be permitted to furnish Condor sufficient gasoline to maintain their present schedules between Buenos Aires and Rio pending the substitution by Pan American of those services.
The Department understands that the YPF will not furnish Condor with any gasoline.
In view of the comments in your telegram under reference, the Department does not expect the Argentine Government will cancel Condor’s franchise at this time but hopes that it may do so at sometime after Condor has ceased operations.