810.20 Defense/2481: Telegram

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

161. Department’s No. 84, March 23, 8 p.m. Argaña has been trying to secure clearance for airport improvement and has twice referred me to the Minister of War,3 the latter has finally taken documentary file on the matter away from air force and general staff and under President’s4 order is personally drafting clause regarding exclusive rights sought by Pan American. Some adjustment of latter’s existing and future position is regarded as necessary, Pan American Airways alleging that Paraguayan Government schemes to take field over and make it free national airport for all classes of companies and traffic with no safeguarding of Panair’s rights. Minister of War promises action and I offered to intervene informally to secure arrangement with Panair. He states and so does Argaña that there is no reason why the work should not proceed prior to the adjustment mentioned but they seem uneasy and I rather share their feeling that the Panair aspect should be cleared up. I think they are now anxious to close the matter immediately.

  1. Brig. Gen. Vicente Machuca.
  2. Higenio Mornigo.