810.79611 PAA/7–2847: Telegram

The Ambassador in Bolivia (Flack) to the Secretary of State

confidential

698. ReDeptel 434, July 25. Have been in constant close touch with Aranibar, Panagra’s representative. We both feel sentiment of government is changing concerning contract and conclusion bilateral air agreement.

General Riviera, commander-in-chief armed forces wrote Jorge Zalles, New York, July 15, 1947, stating that Captain Pol, who attended aeronautical congress in Canada, had no other orders than for that congress and at no time should have offered comment on Panagra’s services in Bolivia. As previously reported to Department, Foreign Office deeply resented Pol’s activities in Washington. Discussed bilateral with Foreign Minister today. He informed me he wished to study matter further and would call me perhaps by the end of the week for further discussion. I stressed our view incorporation of Article 8 in eventual agreement and our opinion that proposed bilateral and Panagra contract entirely separate and that any change in the Panagra [Page 372] contract should be solely by mutual agreement without any intervention by US Government.

Aranibar feels it undesirable for Campbell to arrive until question of bilateral has been decided pro or con, and will accordingly regulate Campbell’s plans.

Flack