825.248/7–2044

Memorandum by Mr. Francis G. Jarvis of the Aviation Division

As you are aware, compliance with the Chilean request for 15 DC–3s34 is impossible at this time. The Army has been able to return but 80 of the 157 transport aircraft acquired from the domestic airlines. Until such time as the balance shall have been returned, the Department cannot attempt to make a case for foreign operators who desire to expand present operations.

[Page 684]

LAN35 is doubtless planning an international operation which, will compete with Panagra.36 I believe Panagra has requested the Department to use its good offices with the appropriate authorities in order that additional equipment might be obtained.

The Panagra request will likely be refused even though a record of priority carriage can be established.

AD37 should ask Comandante Gonzalez to come in for a discussion and we can acquaint him with the present difficult situation, assure him we will bear the Chilean request in mind and that we will advise him immediately when DC–3 aircraft become surplus or excess to military requirements.

  1. See supra.
  2. Línea Aérea Nacional.
  3. Pan American Grace Airways.
  4. Aviation Division.