810.20 Defense/2753: Telegram

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

233. Referring to my telegram No. 225, May 22, 9 p.m and my despatch No. 473, March 28, 1942, and enclosure, file 879.62. Cabinet of Paraguay has approved and Foreign Office has sent me today copy of project decree law as enclosure to note dated May 27 regarding expansion of airfield at Asunción. The new text is identical with draft enclosed with my despatch, with following exceptions which are quoted in full.

  • Article 1. There is established in favor of the air transport company Pan American Airways, Inc., the usufruct, for the period of 20 years, of the fiscal property situated in Campo Grande, in the vicinity of kilometer markings 10 and 12 of the Central Paraguay Railway Line, in an extension 2,000 meters in a north-south direction and 2,000 meters in an east-west direction, which the company at present occupies.
  • Article 4. At the end of the concession, or if same would extinguish before due date for failures on the part of the usufructuary, there will pass automatically to the benefit of the Government all of the installations and constructions made at the exclusive expense of the company and which can be included in the term “fixed and secured within the property” no matter how high the cost of same may have been. Upon delivery, the installations and constructions herein referred to must be in a good state of repair and preservation.
  • Article 7. The company will insure the installations over which the concession is granted against fire risks or destruction from unforeseen causes.
  • Article 9. The General Aeronautics Administration shall be able to utilize the airport whenever opportune, during the time which may be necessary; and shall likewise be delivered to grant special permission for the use of the airport by specified foreign or national airships, in common accord with the concessionary company in the case of foreign airships.
  • Article 10. The usufructuary company is exempted from fiscal or municipal taxes on the property in usufruct.
  • Article 11. The operation of the airport remains subject to the permanent control of the proper agency of the General Aeronautics Administration.
  • Article 12. The control of the customs, police and sanitary authorities will be affected within airport without any knowledge of restrictions, in accordance with laws and regulations in force.
  • Articles 13 and 14 appeared as articles 9 and 10 in the former text.