814.796/10–2745: Telegram

The Ambassador in Guatemala (Kyle) to the Secretary of State

631. The Guatemalan Foreign Minister and the Guatemalan Minister of Finance have again urged me to assist in persuading the authorities of our Government in Washington to permit the sale of air planes and aviation equipment in the U.S. to Aviateca.16 In view of [Page 1089] all the facts reported in the Embassy’s despatch No. 767, October 2317 concerning the decision of Pan-American Airways to accept payment deposited by the Guatemalan Government for its 20% ownership of Aerovías the Department may wish to reconsider its position to permit the sale of airplanes and related equipment to Aviateca on a cash basis. The data concerning book valuation [of] Aerovías requested in the Department’s airgram 693, October 15,18 has been promised by management of Aviateca and should be ready to transmit to the Department within a few days.

  1. In telegram 587 of September 29, 3 p.m., Ambassador Kyle recommended that the Department authorize the cash sale of airplanes to Aviateca, pending a decision as to whether Guatemala’s payment of $212.47 per share of Aerovías stock constituted “just payment” The Department disapproved the recommendation. (814.796/9–2945)
  2. Not printed; it provided figures to show that participation in Aerovías had been very profitable for the owners despite the disputed evaluation of $212.47 per share (814.796/10–2345).
  3. Not printed.