Memorandum by Mr. Livingston L. Satterthwaite of the Division of the American Republics to the Chief of the Division of International Communications (Burke)

Mr. Burke: The attached despatch from Santiago28 makes it more evident that we should take quick and positive action to persuade the Post Office Department to grant Panagra a third frequency between Santiago and Arica. I understand that with present and promised equipment Panagra will be able to operate this frequency so that it will not be necessary for us to pry another airplane from the Army.

In addition to the threat that Lufthansa29 would be able to obtain a concession from the Chilean Government to operate a service between these two points, the attached despatch indicates the strong possibility of collaboration between L.A.T.I.30 and German interests to operate this and perhaps other services.

As you know the Post Office Department recently informed us (letter lost) that the granting of this frequency did not justify, from the mail point of view, the expenditure of the necessary $167,000 a year. It is suggested that you call Postmaster General Walker and emphasize to him the desirability from the standpoint of national policy [Page 565] and defense of the granting of this frequency. If Postmaster General Walker agrees to run interference on this request, we can then, if he so desires, arm him with a letter from the State, War and Navy Departments.

  1. No. 1249, March 13, 1941; not printed.
  2. The Lufthansa was the most prominent firm in pre-war German commercial aviation.
  3. Lineas Aéreas Transcontinental Italianas.