824.796/207: Telegram

The Chargé in Bolivia (Dawson) to the Secretary of State

346. Legation’s despatch No. 1167, October 8.28 Despite my efforts and those of Manager of W. E. Grace and Company, President and Minister of Defense29 are insisting on placing control over civil and commercial aviation in Ministry of Defense by decree instead of Ministry of Communications.

Understand that Manager of W. E. Grace and Company and Calloway30 in charge of Lloyd Aéreo Boliviano reorganization have recommended to Harris, Vice President of Panagra, by telephone that military control should be tacitly accepted without further opposition and that Harris indicated general agreeement.

Respectfully suggest that the Department consult Federal Loan Agency and Panagra and inform Legation whether it desires any formal representations to be made on ground that failure to place civil and commercial aviation under Ministry of Communications might be construed as a unilateral violation of agreement between Federal Loan Agency and Bolivian Government for reorganization of Lloyd Aéreo Boliviano.

I doubt whether such representations would be effective and am inclined to think we should make no comment at this time. If military control proves unsatisfactory the matter can always be taken up on the practical basis of actual points of difficulty.

  1. Not printed.
  2. Gen. José Miguel Candia.
  3. L.C. Calloway.