825.79635/12a: Telegram

The Secretary of State to the Ambassador in Chile ( Bowers )

332. Department has now received assurances from Panagra that it will be prepared to establish additional service between Santiago and Buenos Aires about October 8. The Post Office Department and this Department are interested in this matter because of the hope that with the establishment of additional air transport facilities by Panagra the operation of the Condor line to Chile might be eliminated. In the circumstances the Department would appreciate having an expression of your views as soon as possible whether it might not be appropriately suggested to the Chilean Government that if it is willing to terminate the Condor operation it will be supplanted by an additional service by Panagra.

In connection with the foregoing Panagra officials have advised the Department informally that they have been approached by an official of the Chilean Air Transport Company on the question whether Panagra would be interested in arriving at an understanding whereby Panagra might avail itself of cabotage privileges. It is suggested that you discreetly discuss this point with the local Panagra representative and advise the Department whether you feel that this matter should be linked with the establishment by Panagra of an additional service between Santiago and Buenos Aires.

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