Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

810.154/3251a: Circular airgram

The Secretary of State to Certain Diplomatic Representatives in the American Republics ²

Washington , January 12, 1944—6 p.m.

The Department is informed that the Pan American Highway is no longer regarded by the United States Army officials as a military project.³ Consumption of petroleum products for this purpose is automatically excluded from the war essential category. It may be possible to obtain approval for substantially reduced quantities of petroleum products for the same purpose under the classification of economic essentials. There is, however, currently an acute shortage of light petroleum products especially gas oil, kerosene, aviation and motor gasoline which will necessarily limit the quantities which can be authorized. You are therefore requested to prepare an estimate of quantities which can be justified from an economic point of view for the purpose of continuing operations on the highway.

Hull

2. Sent to Costa Rica, Guatemala, Honduras, Nicaragua, and Panama.
3. Insofar as the United States Army officials were concerned, reference is to the so-called Pioneer Highway project undertaken by the War Department in June 1942 to establish as soon as possible a through line of communication from the Mexico–Guatemala border to the Panama Canal and terminated on October 31, 1943. Of the approximately 600 miles of Pioneer road completed by the War Department, about 200 miles was estimated to be useful to the future Inter-American Highway extending approximately 3,250 miles through Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama; no United States funds had been appropriated for construction of this highway through Mexico, although the Export-Import Bank extended a loan of $30,000,000 to the Mexican Government in August 1941 to assist in the construction of a national system of roads including sections of the Inter-American Highway in Mexico; and this line of credit was increased by an additional $10,000,000 in July 1945. The Inter-American Highway is a part of the comprehensive system of highways joining the South American countries with the United States, Canada, and Alaska, popularly known as the Pan-American Highway.