825.796/29
The Pan American Airways, Inc., to the Assistant Secretary of State (White)
[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,
By