824.796/132: Telegram

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

101. Referring to my No. 90 of May 16, 10 a.m.22 LAB stockholders meeting was held late yesterday afternoon, Minister of Finance presiding, and Government took over management of company this morning with Federico Cocha acting manager. German minority representing approximately 5,000 shares offered certain objections which were overruled by Minister of Finance, who declared majority of stockholders favorable to reorganization. Minister of Finance also stated stock would be paid for at fair price to be determined when financial status of company is finally ascertained.…

Government decree authorizing Panagra to operate to Corumba has been signed by President and Minister of Finance and will probably be published today. Operating contract between Government and Panagra for other LAB services is now being drafted.23 Hardin24 expected to arrive tomorrow in Grummon25 from Lima.

  1. Not printed.
  2. The loan agreement providing for the reorganization of L.A.B. was approved by a supreme resolution of the Bolivian Congress on June 19, 1041 (824.79/147). Spanish text of the resolution appears in Anuario Administrativo de 1941, Vol. 2, p. 1662.
  3. Thomas Hardin, member of the commission to reorganize the Lloyd Aéreo Boliviano.
  4. A type of amphibian airplane.