Caribbean region. The French are already very active, as you know, in running a service from Paris to Dakar by airplane; thence to the Brazilian coast by steamer, and thence to Rio and Buenos Aires by airplane, and the German so-called Scadta Company 70 is very active in Colombia and the Germans are also active in Bolivia, Peru and Ecuador. Mr. Trippe will probably want to discuss matters with the Latecoere Company and try to make some arrangement with them and any assistance that the Embassy can render him will be most highly appreciated I assure you. With kindest regards [etc.] FRANCIS WHITE 810.79611 Pan American Airways, Inc./136: Telegram The Secretary of State to the Vice Consul at Nassau (Points) WASHINGTON, October 1, 1928-6 p. m. Pan American Airways which has been awarded contract by Post Office Department for carrying mail from Key West to Panama Canal Zone and from Key West to Porto Rico is contemplating bidding for contract between Miami and Nassau. Mr. John A. Hambleton, Vice President of the Company, is in Nassau in connection with this matter. Please render him all proper assistance. KELLOGG 810.79611 Pan American Airways, Inc./145 The Minister in the Dominican Republic (Young) to the Secretary of No. 1058 State SANTO DOMINGO, October 15, 1928. [Received October 23.] SIR: Adverting to the Department's telegram No. 24 of September 10, 1928, regarding the Pan American Airways, Incorporated, I have the honor to report that representatives of this company, Messrs. Nagle and MacGregor, were here recently for a few days in the interests of this company. They were introduced by the Legation to President Vasquez and the Minister of Finance to whom they outlined the company's plans with respects to the establishment of a commercial air service between Miami, Florida, and San Juan, Porto Rico. The President and Minister de Moya stated that the establishment of the proposed service would be cordially welcomed by the Dominican Government which would gladly accord every possible facility and assistance. 70 Sociedad Colombo-Alemana de Transportes Aereos. It is understood that Mr. Nagle will return to Santo Domingo in the near future and will then endeavor to reach a formal agreement and undertaking with the Government. The Legation was happy to accord to these gentlemen during their stay here every possible and proper assistance. I have [etc.] EVAN E. YOUNG 810.79611 Pan American Airways, Inc./166 The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, November 26, 1928. No. 1324 [Received December 6.] SIR: I have the honor to report that the officials of the Pan-American Airways, Inc., have recently been in Haiti and have taken up with me the question of obtaining a concession or contract with the Haitian government. There is attached hereto a copy of the contract first proposed by the Pan-American Airways, Inc. There is also attached a memorandum giving the views of the treaty officials on the proposed contract.75 The Pan-American Airways, Inc., is in agreement except as to article 8, and it proposed a new article 8, copy attached. A few days ago President Borno spoke to me on this subject and said that he believed that the Haitian government should assist this new industry in Haiti which he thought would be of material benefit to the country, and that, as a consequence, he was prepared to heartily endorse article 8 submitted by the company allowing exemption from taxes and payment of import duties on gasoline, oils, special tools, and spare parts. The representative of the Pan-American Airways, Inc., at Port au Prince informs me that other governments have already agreed to a clause similar to the proposed article 8, and while from a financial point of view the question is one of small moment, from a political point of view the rejection of this clause by Haiti would be serious, in as much as other countries have readily agreed to it and would be unable to understand how Haiti was to be excepted. Dr. Millspaugh, the Financial Adviser-General Receiver is strongly opposed to the inclusion of this clause in the contract. I feel that in view of the fact that the work is pioneer work, that it will unquestionably be a decided benefit to Haiti and form one of those ties that I am trying to develop which will bind Haiti to the United States commercially in such manner as to assure the future stability of this country, that it would be perfectly proper to permit the "Not printed. desired exemption, particularly in view of the fact that President Borno, representing Haiti, is strongly in favor of it. The representative of the Pan-American Airways, Inc., has just presented a new article, copy attached, which he desires incorporated in the proposed contract as article 16. This article is now being studied. At first glance I am not in particular sympathy with it, and do not believe that there would be much difficulty in having it eliminated, particularly if article 8, as proposed by the company was included in the contract. It is requested that the Department inform me by telegraph its views regarding article 8 proposed by the company, in order that the representative of the Pan-American Airways, Inc., may take up this question with the Haitian government to the end that the contract may be consummated at an early date. I have [etc.] [Enclosure 1-Extract] JOHN H. RUSSELL Proposed Contract Between the Republic of Haiti and the Pan American Airways, Inc. EIGHTH In view of the fact that the Company asks no subsidy or subvention of any kind from the Government, and because of the value of the services the Company will render, the Government agrees that the Company shall be free from all taxes, federal and municipal, and that the present import and export duties on airships, gasoline, oils, and material and supplies of every kind used in the establishment or operation of its business shall not be increased. The Company shall have free use of the internal mails, telegraph, telephone, and radio systems, but only for matters relating to the Company's own business. [Enclosure 2] Draft Article 8 Proposed by the Pan American Airways, Inc. ARTICLE 8. In consideration of the value to the Haitian Government of the services of the Company (Pan American Airways, Inc.,) will render, and to assist the Company in initiating and maintaining the most efficient service, the Haitian Government agrees that, for a period of Ten Years, the Company shall be exempted from all taxes, federal and municipal, and from the payment of all import duties on airplane Gasoline, Oils and Special Tools and Spare Parts to be used exclusively in the establishment and operation of its business. [Enclosure 3] Draft Article 16 Proposed by the Pan American Airways, Inc. The Company agrees that it will carry under a scale of tariffs to be fixed by agreement between the Government and the Company, all Haitian air mail to Porto Rico, Santo Domingo, Cuba and the United States. The Government agrees that it will not deliver to any other person or company any Haitian air mail to the foregoing countries so long as the total amount of air mail does not exceed twenty-five percent. (25%) of the total first-class mail from Haiti to those countries. The Company shall have the right to arrange a revision of the air mail tariffs when improvements in the service or increase in the volume of the air mail make the revision of such tariffs advisable. 810.79611 Pan American Airways, Inc./167 The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, November 28, 1928. SIR: Referring to my Despatch No. 1324 of November 26th, 1928, I have the honor to inform the Department that this morning I had a conference with representatives of the Pan-American Airways, Inc., and it appears that they are very desirous of having Article 16 incorporated in the proposed contract. The Financial Adviser-General Receiver is of the opinion that the second sentence of this Article would grant a monopoly of the most objectionable sort. He further feels that the Haitian Government should not obligate itself to send mails by the services of this Company before an agreement has been reached as to rates. He also believes that the third sentence is objectionable in that it might be construed as giving the Company the right to revise rates upward as well as downward and without the consent of the other party. He recommended that in place of this Article the following be substituted: "The Company agrees that it will carry, under tariffs to be fixed from time to time by agreement with the Government, the air mails delivered to the Company by the postal service of the Republic, subject to the limitation as to total weight fixed elsewhere in the present contract." The Pan-American Airways states that Article 16 is not in the nature of a monopoly but is preferential treatment due to the fact that the Company is performing pioneer work. It further states that it is very desirous of having this Article as well as Article 8, incorporated in the contract with a view to assisting the Company in obtaining similar provisions in contracts with other countries. And that if these Articles were left out of the Haitian contract it would be very difficult to incorporate them in other contracts, also that they already exist, particularly in the contract with Nicaragua which contract met with the approval of the Department of State. It would appear that Article 16 gives to the Company an unqualified monopoly and I am quite aware of the Department's attitude regarding monopolies. But I feel that the benefits accruing to Haiti from the contemplated services of this Company are such as to permit of the most liberal action on the part of the Haitian Government. I would therefore suggest that the Department, while not approving of the monopolistic features of Article 16, not object to the giving of this Article as well as Article 8 in the proposed contract, if the Haitian Government so desires. I have [etc.] JOHN H. RUSSELL 810.79611 Pan American Airways, Inc./159: Telegram The Ambassador in Great Britain (Houghton) to the Secretary of State LONDON, December 1, 1928-noon. [Received December 1-9: 10 a. m.] 267. Department's 168, July 6, 5 p. m.76 Informal Foreign Office note just received states: "All the necessary arrangements have been made in the departments concerned at this end; we understand that the position now is that the Government of British Honduras is negotiating directly with the corporation and we hope accordingly that no difficulty will arise." HOUGHTON 810.79611 Pan American Airways, Inc./162: Telegram The Minister in Costa Rica (Davis) to the Secretary of State SAN JOSÉ, December 4, 1928—9 a. m. [Received 2:25 p. m.] 91. My 88, November 26, 2 p. m." It now appears probable that railway to Limon cannot operate for at least six months. 70 Not printed; it requested the Embassy to expedite reply to Department's telegram No. 161 of June 26, 3 p. m., p. 784. "Not printed; it informed the Department that because of floods extending from San José to Limon, the railway between those points would probably not operate until March 1. (File No. 818.481/1.) |