824.796/78: Telegram

The Minister in Bolivia ( Jenkins ) to the Secretary of State

5. Department’s telegram No. 4, January 9, 10 p.m. While I have not discussed this matter directly with Bolivian officials it is my impression that they would welcome plan outlined which dovetails closely with plans and aspirations of committees set up by the Bolivian Government to study aviation situation as reported in my despatch 553 of December 31.1 If the Department will authorize me I believe it would serve a useful purpose for me to approach Bolivian officials and get a more concrete statement of their wishes without of course intimating that we would necessarily be prepared to further them.

Bolivian Government owns 48% of L.A.B. stock and with shares by Government-owned Banco Central has 52% control and since could presumably effect any desired reorganization.

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I have just been informed that Lufthansa3 has made offer to Government for reorganization of L.A.B. including delivery of four new planes, but do not believe this will be seriously considered.

Gustavo Vidal, vice president and comptroller of Pan American Grace Airways, is now in La Paz studying possibility of taking over L.A.B. lines. Would appreciate being advised whether Panagra or any other company is being definitely considered in connection with plan outlined by Department.

Jenkins
  1. Not printed
  2. The Lufthansa was the principal agency of German Civil Air Communication.