The Secretary of State to the Ambassador in Brazil (Caffery)
290. Your no. 333, February 3, 1942. You may give assurance to Aranha that neither Panair do Brasil nor Pan American Airways will participate in any plan of collaboration that may be worked out between representatives of this Government and the Brazilian authorities in connection with the operations of Condor. It is not the intention [Page 770]of this Government to create any monopoly of Brazilian aviation for Panair. You may state also that in so far as may be desired by the Brazilian authorities this Government is prepared to call upon Pan American Airways to cancel any extensions of service within Brazil that may have been made as a result of the cessation of the Condor flights.
Since it is understood that the Brazilian authorities will probably make a request for the furnishing of gasoline to Condor, it is felt that you should at the earliest moment endeavor to obtain a commitment from them that in order that the company may be regarded as a bona fide national organization the Brazilian Government will be disposed to assume complete control and ownership of Condor and set it up as a wholly Brazilian corporation thus divorcing it from all links with its past corporate set up. While it would appear to be desirable for the name of the company to be changed in order to lend emphasis to the fact that it has been reorganized as a Brazilian national company, Department leaves it to your discretion to decide whether it would be advisable to make a suggestion to this effect to the Brazilian authorities.
It is deemed to be highly important that as a first step action be taken with the view to eliminating from the Condor service all dangerous Axis personnel or persons in sympathy with the Axis powers. It would seem necessary at once to eliminate Hoelen87 and other key men of his leanings. It is particularly important, in this connection, that all doubtful personnel having anything to do with the operation of radio be removed at the earliest possible moment.
In order that a general survey may be made of the situation as to personnel and equipment, the D. S. C.88 is sending Tom Hardin89 to Rio immediately to consult with you in regard to the carrying out of this survey. Hardin with your assistance should be able to suggest names of persons who should be removed from Condor and make recommendations and assist in obtaining United States personnel on a temporary basis pending training of satisfactory Brazilians for the positions vacated. This is considered to be highly desirable in order that we may be in a position to render as much assistance as possible in the way of furnishing temporary substitute personnel as well as equipment. It is thought, in this connection, that if reliable executive personnel could first be provided it would be an important step in the direction of the removal of all Axis influence from the Condor operation.