824.796/83a: Telegram
The Secretary of State to the Minister in Bolivia (Jenkins)
13. On February 14 officials of the Department and Messrs. Roig,4 Harris5 and Vidal, of Pan American Grace Airways, discussed the possible participation by Panagra in the operation of air transport services within Bolivia.
The company is disposed to send a representative (probably Vidal) to Bolivia for the purpose of working out an acceptable plan with Bolivian officials for replacing L.A.B. You should, of course, render all appropriate assistance in the discussions with the Bolivian authorities.
Please ascertain whether the Bolivian Government is agreeable, in principle, to the working out of a plan for the reorganization of L.A.B. or its replacement by a new company so that German influence and management would be eliminated. Every effort would be made, of course, to make the new service better than the existing service and in addition to rendering technical assistance an opportunity would be afforded for the training of Bolivian pilots and ground personnel.
For your information, Panagra’s representatives are disposed to favor a plan which would call for the replacement of L.A.B. by a new Bolivian company with which Panagra would cooperate by rendering technical assistance, training of pilots, ground personnel, etc. Panagra officials are of the opinion that the trunk line service between La Paz and the Brazilian border could better be operated as an extension of the through Panagra international system.
A copy of memorandum of the conference with Panagra representatives is being sent you by air mail.