810.20 Defense/2346

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

No. 473

Sir: I have the honor to acknowledge the Department’s telegraphic instruction No. 84 of March 23—8 p.m. with reference to the undertaking in the immediate future of airport improvements at Asunción and Concepción. In accordance with this instruction I have both orally and in writing informed the Foreign Minister1 that if in the case of Paraguay no further permission or negotiations are necessary it is desired to notify his government that the construction in question will be undertaken soon and at the instance of the American Government. [Page 645] He has also been informed that specific details as to the work contemplated are en route by air mail and will be furnished him when received.

Dr. Argaña, who has recently taken a strong position in favor of the airport improvements in Cabinet meetings as a result of hints from me, expressed himself as pleased at the Department’s attitude, and he awaits with interest the receipt of detailed information.

Meanwhile there are transmitted herewith copies and translations of the “presentation” made by the local manager of Pan American Airways to the Director of Aerial Traffic on January 22, 1942, and of the draft project for the contract which he hoped to secure from the Paraguayan Government on behalf of Pan American Airways, Inc.2 Further comment on these documents and on the negotiations in connection with which they were prepared will be submitted in a subsequent despatch; but it may be mentioned that the principal point of discussion was the matter of exclusive rights for Pan American Airways mentioned in Articles 1 and 5 of the draft project.

Respectfully yours,

Wesley Frost
  1. L. Argaa.
  2. Not printed.