810.20 Defense/2228a: Telegram
The Acting Secretary of State to the Ambassador in Brazil ( Caffery )
624. I am sending you by air mail portions of three memoranda relating to Brazil handed me by the War Department in connection with certain projects for the construction of additional airports by Pan American Airways.43 If you concur, General Olds will take this matter up with the Brazilian authorities at the same time he discusses with them the details of the questions regarding which President Vargas has already given general approval.
Since it is now well known throughout the Americas that the airport development program of Pan American Airways under the original program was financed by this Government, and in view of the changed situation, I think that such negotiations as may be required with the Brazilian Government should be conducted by this Government rather than by Pan American Airways as was done in the first program. Specific details on the work proposed to be done on each site have been requested of the War Department and will be forwarded as soon as received.
As you will note from one of the memoranda, the War Department is ready to consider that the funds necessary for the construction work to be done at Montes Claros, Carolina, Caravellas and Barreiras be either lent or given to the Brazilian Government in order that that Government might perform this work rather than Pan American Airways. The idea of the War Department is that possibly the Brazilian Government would be pleased and, therefore, more cooperative generally and specifically in connection with the improvement of the other airports in Brazil which are of greater strategic importance to this Government. The War Department would, of course, be glad to lend the Brazilian Government such engineers and advice as might be requested. Would you please telegraph me whether, in your opinion, the Brazilian Government would be pleased at this prospect, particularly if the funds are donated for the purpose, so that the War Department can prepare an adequate statement for your use in taking the matter up with the Brazilian authorities.
- War Department memoranda not printed; portions of these memoranda were transmitted to the Ambassador in Brazil by Mr. Welles in a letter of March 13, 1942 (not printed).↩