814.796/10–1546
Memorandum of Telephone Conversation, by the Acting Chief of the Division of Central America and Panama Affairs (Newbegin)
Dr. López-Herrarte called this morning to state that he had an application for two propellers for the use of Aviateca and that he wished to check with me as to the Department’s attitude towards permitting the licensing of equipment for Aviateca at this time. I informed him that the Department’s attitude had changed somewhat due to the change in the status of Aviateca. I pointed out that in view of the action taken by the Guatemalan Government in taking over Aviateca, the entire responsibility for a settlement of the Aviateca-Aerovias matter now rested with the Guatemalan Government and that there was no longer a divided responsibility as between the former owners of Aviateca (as distinct from Aerovias and the Denby interests) and the Government. I told him that on the assumption that the Guatemalan Government would now make every effort to reach a settlement, we would look with more sympathy on the licensing of equipment for Aviateca than we had under the previous arrangement.
Dr. López-Herrarte then inquired as to whether we had been informed of any progress as regards the question of a settlement of the Aerovias matter. I replied that we had been informed that Mr. Gherini was in direct contact with representatives of the Guatemalan Government in an effort to establish the facts and that it was understood that a commission would be appointed to work out any differences of views between the two parties. I added that although this did indicate some progress, nonetheless, we did not appear to be much nearer to a final solution than we had been heretofore. I explained that the Department’s attitude was unchanged and that we continued to regard the long delays in reaching a settlement as unwarranted and deplorable.
In referring to the intervention on Denby’s other properties, I informed Dr. López-Herrarte that we had been informed that action [Page 901] was to be taken by the Government with a view to its lifting but that here again the action had not as yet been taken and there was no real change from the time when the case originally arose. Dr. López-Herrarte said that he understood the Department’s position perfectly and was in full agreement with it; that he also felt the entire responsibility for a settlement now rested with the Guatemalan Government. I told him that I would appreciate his informing his Government of the reasons for the change in the Department’s views as regarded equipment for Aviateca and particularly its hope that the Guatemalan Government would expedite action. Dr. López-Herrarte expressed his thanks for the Department’s very generous attitude.