810.20 Defense/2787: Telegram

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

202. Reference your despatch no. 125, May 30, 1942.9 Your telegram no. 258, June 11, 10 p.m. The War Department and this Department do not desire to obtain any special privileges in Paraguay, but wish to assure that at least, for the duration of the emergency, only aircraft owned, operated and effectively controlled by bona fide citizens of the American republics who subscribe to the Declaration of Lima shall have access to the airports constructed in Paraguay wholly or partly with United States Government funds. This Government also desires to assure that any aircraft meeting the above conditions, subject, of course, to the approval of the Paraguayan Government, may use the airport or airports.

The following changes in a draft decree law enclosed with your despatch no. 125 are suggested:

The following paragraph to be added to Article V:

“Pan American Airways, Inc., shall likewise allow full use of the airport by aircraft owned by or operated for the Governments of any of the American republics or operated by any company which is controlled by bona fide citizens of any of the American republics, or owned directly by such bona fide citizens of any of the American republics, [Page 653] in such special circumstances as the General Aeronautics Administration of the Paraguayan Government may consider it appropriate to grant permission for such use of the airport.”

Article IX to be redrafted as follows:

“Article IX. The General Aeronautics Administration is empowered to utilize the airport at any time, for as long a period as may be necessary; it is likewise empowered to grant special permission for the use of the airport by the aircraft specified in Article V of this decree, with due consideration of course for the requirements of the concessionaire company in the operation and maintenance of its regular or special services,”

You will observe from the suggested language of Articles V and IX that this Government wishes to exclude from the use of the airport or airports all aircraft owned or controlled by governments, companies or citizens not of the American republics, and that this Government wishes at the same time to avoid an arrangement by which a particular United States carrier has a monopoly for the use of an airport constructed with funds of this Government. As you are aware, the principal consideration which has led this Government to undertake airport construction in Paraguay is the desire to assist Paraguay in a constructive development of public benefit.

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