832.7962/86
The Secretary of State to the Ambassador in Brazil (Caffery)
Sir: The Department refers to the Embassy’s despatch no. 12564 of September 2, 1943 (and to instruction no. 4962 of September 4, 1943) enclosing for the Department’s approval a proposed aide-mémoire for delivery to the Air Ministry, formalizing the understanding of the conditions under which Panair do Brasil may continue the construction and operation of airports and facilities on behalf of the United States Government.
The Embassy’s proposed aide-mémoire has been given careful consideration in this Department and in consultation with a representative of the War Department. In view of Pan American Airways’ interest in the matter the company was given an opportunity to present its views. For your information and the files of the Embassy a copy of a memorandum of the conference with representatives of Pan American Airways is enclosed, together with a copy of the proposed aide-mémoire with suggested revisions.53
The representatives of Pan American Airways objected strongly to the disclosure of the fact that at the inception of the airport development program, the company was working as “an agent in fact of the United States War Department”, saying that this work was conducted under a secret contract with the War Department, the secrecy of which the company had carefully preserved. The State and War Department representatives pointed out that the interest of the United States armed services in the airport construction program is well known in Brazil, and under the circumstances it was felt that the company was unduly concerned on this point. Nevertheless, no particular disadvantage was seen in making certain changes in the draft aide-mémoire with the view to meeting the company’s objections so far as possible. Therefore, it will be noted that the fourth paragraph has been revised accordingly, and that subsequent references to Panair’s activities as “agent” of the United States Army have been revised to read “on behalf of the Government of the United States”.
[Page 640]It is believed by the Department that the seventh paragraph of the proposed aide-mémoire should be expanded in order to cover more explicitly both construction that might have already been started and construction that might be required in the future. The Department feels that it should also be made clear that construction at points other than the airports specifically named in Decree Law no. 3462 is to be covered by the proposed aide-mémoire. For the same reason, it is suggested that numbered paragraph (2) of the Embassy’s draft should be of broader application and made to refer to all the construction included in the scope of the aide-mémoire.
Numbered paragraph (5) has been revised with the principal purpose of obtaining a more definite assurance as to equality of treatment to any United States air transport lines that may be authorized to operate in Brazil, and no special reason was perceived for retaining the phrase “for account of the United States Government”. It has not been thought desirable to make mention of Brazilian lines in this respect, as it appears to be quite evident that the Brazilian Government would be in a position to insist upon any necessary safeguard so far as Brazilian national lines may be concerned.
Since paragraph (6) seems to be a repetition of matter appearing in other places in the aide-mémoire its deletion is suggested.
The Department will be glad to have you give careful consideration to the suggested amendments and report whether you feel that any of them would be inadvisable.
While the Department concurs with the Embassy’s views on the subject, the Pan American representatives were very much disappointed at the Embassy’s suggestion that present negotiations not be complicated by an insistence at this time upon a definition of “accessory facilities”. They expressed concern about the possibility of losing control over certain fueling, radio and meteorological installations, and again claimed that some of the radio facilities had been installed with company funds. In view of the importance of this matter, it is assumed that the Embassy has in mind the necessity of obtaining a satisfactory definition of “accessory facilities” as soon as possible after reaching an agreement on the matters covered in the proposed aide-mémoire.
Possibly a clarification of the desires of Pan American Airways and of the interest of this Government in the subjects raised in the proposed aide-mémoire will assist in dispelling any reluctance which General Gomes and other Brazilian officials might have in agreeing to a satisfactory definition of the term “accessory facilities”.
Very truly yours,
- Neither printed.↩