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for the company. I am sending full text of contracts by mail.88 The Government of Chile is considering the establishment of its own air mail service between Arica and Valdivia and it probably would not favor the proposed American service unless Chilean pilots were to be used within Chilean territory as soon as a competent force could be assembled. Arrangements would be facilitated if such assurances could be given to the Government of Chile. So far the Latécoère Company has failed utterly to maintain its schedules between the city of Buenos Aires and Europe. The Director General of Posts says that Chíle will endeavor to annul the contract if improvement is not made within a few months, but it is my opinion that the contract restrictions will make this difficult.

COLLIER

825.796/24

The Ambassador in Chile (Collier) to the Secretary of State No. 1410

SANTIAGO, June 7, 1928.

[Received July 5.] Sir: I have the honor to state that on June 1st I accompanied the Minister of Foreign Affairs and the then acting Minister of the Interior, Señor Osvaldo Koch (Minister of Justice), and the Director General of Posts (Señor Brieba), in the car of the President of the Republic, to Valparaiso to attend the ceremonies arranged by the Grace Line to celebrate the arrival, for the first time in that port, of their new motor ship, the Santa Maria.

I had an opportunity to talk with the Director General of Posts with regard to the possibility of the establishment of an air mail service between the United States and Chile. The Department will recall my despatches, sent some two months ago,84 with regard to other conversations with him concerning this matter and particularly as to the French Latécoère Company's contract for the air mail service between Chile, Argentina, Uruguay, Brazil, Africa and Europe.

The Director General also said that he had been giving much thought to air mail service in Chile and that he believed that the principle of "cabotage” or coastwise trade ought to be applied to air ships as well as to ocean going ships; namely, that the transport of mail, passengers and packages from one Chilean town to another by air ought to be reserved to Chilean air ships, and that foreign air ships should be allowed to carry on trade only between Chilean towns and foreign towns. I expressed the opinion that this rather novel suggestion would militate against the establishment of air service;

Not printed.
Despatches not printed; see Ambassador's telegram No. 54, supra.

that at the present time every incentive should be given to the establishment of such services rather than restrictions imposed which would prevent or retard their establishment and development.

In the conversation which I had with the Minister of Foreign Affairs at his weekly reception on June 6, 1928, I brought up the matter and reiterated these views and expressed the hope that Chile would not adopt a policy which would in any way impede the establishment and maintenance of an air mail service between the United States and Chile or impair the service. I have [etc.]

WM. MILLER COLLIER

825.796/25 : Telegram The Ambassador in Chile (Culbertson) to the Secretary of State

SANTIAGO, October 8, 1928–11 a. m.

[Received 12:46 p. m.] 112. Department's 27, April 14 [13], 7 p. m.; Embassy's despatch No. 1354, April 20.85 Any pertinent information which the Department can give Embassy regarding contemplated projects Peru to Santiago section air mail route New York to Chile would facilitate latter's obtaining from the Government more precise indication as to the extent of Chilean Government's cooperation and facilities.

CULBERTSON

825.796/25

The Secretary of State to the Pan American Airways, Inc.

WASHINGTON, October 13, 1928. SIRS: With reference to your project for supplying air mail service from the United States to the southernmost part of Chile, concerning which Department informed the American Embassy at Santiago some time ago, I have to inform you that the American Ambassador to Chile has now telegraphed that he would be pleased to receive any pertinent information regarding the Chilean section of the proposed air mail service which would facilitate his obtaining from the Chilean Government more precise indication as to the extent of that Government's probable cooperation and facilities.

In order that the Department may reply by telegraph to the Ambassador, I shall be pleased to receive any information you can give me regarding the latest developments with regard to this project. I am [etc.]

For the Secretary of State:

FRANCIS WHITE
Assistant Secretary

65 Latter not printed.

825.796/27

The Pan American Airways, Inc., to the Assistant Secretary of State

(White)
NEW YORK, October 16, 1928.

[Received October 18.] SIR: Reply to yours of October 13th has been delayed owing to my absence.

The President of this Company, Mr. J. T. Trippe, is now in Europe and nothing will be done toward formulating definite plans for extending the operations of the Peruvian Airways Corporation beyond Peru, until his return.

The Peruvian Airways Corporation, which is jointly owned by W. R. Grace & Co. and Pan American Airways, Inc., is now operating a service between Callao and Talara, Peru, and it is hoped that this operation can develop sufficient data to justify its expansion and extension within a reasonably short time. It will be several months yet, however, before we could undertake negotiations with the Chilean Government, unless it is felt by the State Department to be of vital importance to begin these negotiations soon. Respectfully yours,

PAN AMERICAN AIRWAYS, INC.
JOHN A. HAMBLETON, Vice President

825.796/27

The Acting Secretary of State to the Pan American Airways, Inc.

WASHINGTON, October 19, 1928. SIRS: The Department has received your letter of October 16 answering its communication of October 13 and notes that it will be several months before you can undertake negotiations with the Chilean Government looking to the extension of your service beyond Peru unless it is felt by the State Department to be of vital importance to begin these negotiations sooner. In reply the Department desires to inform you that from information which it has received from the Embassy at Santiago as reported to you in the Department's letter of October 13 it would appear that the possibility of your reaching a satisfactory agreement with the Chilean Government may be seriously jeopardized through any considerable delay on your part in undertaking negotiations and the Department does feel that it is of great importance that these negotiations be undertaken at an early date, or at least that the

Chilean Government be given some assurance that an extension of
your operations to Chile is seriously contemplated in the near future.
I am [etc.]
For the Acting Secretary of State:

FRANCIS WHITE
Assistant Secretary

825.796/29

The Pan American Airways, Inc., to the Assistant Secretary of State

(White)

NEW YORK, October 24, 1928.

[Received October 25. DEAR SIR: In reply to yours of October 19th, I beg to advise that this Company now has under consideration plans for undertaking negotiations with the Chilean Government within the reasonably near future.

It must be realized by the Department that the commencement of air transport operations by this Company in the Republic of Chile is entirely dependent upon possible revenues obtainable. Any concession negotiated at the present time must assure the Company a reasonable return on its capital investment, and operations under such concession must necessarily be contingent upon the award of a United States mail contract at a rate sufficient to justify a through international service to Valparaiso. The question of just what this return must be for such an extended service, we are at this moment not prepared to say.

You may rest assured, however, that an extension of our operations to Chile is seriously contemplated provided a satisfactory arrangement can be made with the Chilean Government and provided, further, that an advantageous contract can be secured for the transportation of United States mail. Respectfully,

PAN AMERICAN AIRWAYS, INO.
By John A. HAMBLETON, Vice President

825.796/28 : Telegram

The Secretary of State to the Ambassador in Chile (Culbertson)

WASHINGTON, October 27, 1928noon. 72. Reference your No. 112 of October 8, 11 A. M. Pan American Airways Incorporated informs Department that it now has under consideration plans for undertaking negotiations with Chilean Government within reasonably near future. Department will inform you immediately Company's definite plans are available.

KELLOGG

Department of Commerce Flight-Demonstrations by Curtiss Company and

Consolidated Aircraft Corporation

820.7961 Dept. of Commerce Flight/3: Telegram

The Secretary of State to the Ambassador! in Argentina (Bliss) 89

WASHINGTON, January 7, 1928–8 p. m. 1. The Department of Commerce states that arrangements have been made to send two American built airplanes, one a Curtiss-Hawk equipped with pontoons and the other a Curtiss-Falcon, to South America on an experimental and path finding flight. These planes will be under the supervision of Mr. James D. Summers, Aeronautical Trade Commissioner of the Department of Commerce for Latin America, and in direct charge of Mr. C. W. Webster. In the party will also be Lieutenant James Doolittle, an Army pilot on leave, William H. McMullen, a civilian pilot, and Mr. J. A. Todhunter, a mechanic.

Please request permission for flight in Argentina. The expedition plans also to visit Peru, Chile, Bolivia, Uruguay and Brazil.

KELLOGG

820.7961 Dept. of Commerce Flight/7: Telegram

The Secretary of State to the Chargé in Brazil (Schoenfeld) 87

WASHINGTON, January 7, 1928–8 p.m. 2. The Department of Commerce states that arrangements have been made to send two American built airplanes, one a Curtiss-Hawk equipped with pontoons and the other a Curtiss-Falcon, to South America on an experimental and path finding flight. These planes will be under the supervision of Mr. James D. Summers, Aeronautical Trade Commissioner of the Department of Commerce for Latin America, and in direct charge of Mr. C. W. Webster. In the party will also be Lieutenant James Doolittle, an Army pilot on leave, William H. McMullen, a civilian pilot, and Mr. J. A. Todhunter, a mechanic.

Please request free entry for equipment and permission for flight in Brazil. Name of steamer and date of arrival will be cabled later. The expedition plans also to visit Bolivia, Chile, Argentina, Uruguay and Peru.

KELLOGG

* The same, mutatis mutandis, on the same date to the missions in Bolivia (No. 1), Chile (No. 3), and Uruguay (No. 1).

* The same, mutatis mutandis, on the same date to the Ambassador in Peru as telegram No. 1.

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