810.20 Defense/2345a: Telegram

The Acting Secretary of State to the Ambassador in Paraguay (Frost)

84. Under a new contract entered into between the War Department and Pan American Airways it is contemplated to go ahead with construction of airport improvements at Asunción and Concepción in the near future.

Since it is now well known throughout the American republics that the airport development work of Pan American under the original program was financed by this Government, and in view of the changed situation, it is believed that such negotiations as may be required with the Paraguayan Government should be conducted by this Government rather than through Pan American Airways as was done in the first program. If, in the case of Paraguay, no further permissions or negotiations are necessary, it presumably will be sufficient for you to notify the Paraguayan Government that the construction work will be undertaken soon and at the instance of this Government.

Specific details of the work contemplated are being sent you by air mail.