821.796 Avianca/67: Telegram
The Ambassador in Colombia ( Braden ) to the Secretary of State
[Received February 15—10:11 a.m.]
39. My No. 28, February 6, 8 p.m. Rihl had conversation with the President of the Republic today (Minister of War present) which may be summarized as follows:
Commercial:
[Page 731]Government is adamant on 51% plan; it will have three directors, minority interests three and if five or six cannot agree on seventh, manager of the Bank of the Republic will automatically be appointed. Initial paid-in capital 3,650,000 pesos may be increased to authorized capital 5,000,000 pesos by simple majority board vote thereafter requiring stockholders’ approval, i. e. Government. Price to be paid for Panair held not definitely determined but no difficulty anticipated. This appears to give Panair best commercial setup obtainable under the circumstances. Uncertain whether Corral will assume presidency.
Defense:
Rihl, pursuant to my request, made statement to the President as per section 3 my telegram under reference. Santos stated he would gladly assure me at our forthcoming meeting on the following:
- (a)
- He would instruct Government directors to approve all measures required to insure canal safety such as installation of adcocks, personnel changes, employment of otherwise possibly unnecessary men even though such measures involved expenditures debatable for Avianca under normal commercial operation. Rihl stated if other commercially unnecessary steps were required Panair would come to some agreement thereon. This the President apparently accepted.
- (b)
- Santos volunteered to leave military guards at airports if needed and offered full cooperation of Colombian military aviation.
- (c)
- He had no objection to removal of German personnel who had been in Colombia 3 to 5 years but said those with roots and connections in Colombia by reason of longer tenure ought to be retained as of value to the company. He admitted there was much sentiment in this and emphasized he did not wish to have it appear that Americanization was being substituted for Germanization.
- (d)
- He declared categorically that were the United States to go to war with Germany he would immediately instruct Avianca to discharge all German pilots but with the understanding Pan American Airways would forthwith substitute Americans to prevent any stoppage of service.
Rihl last week advised Ministers of War and Finance American personnel was about to be installed. No objection so far raised thereto.
While operating contract for Pan American Airways was not broached at this meeting conversation was premised on assumption Pan American Airways would have technical control.
Under foregoing conditions all protective measures contemplated in my telegram under reference can be accomplished.
When I see the President I wish to be able to receive his firm assurances on the aforementioned safety measures but also to request any other necessary. To this end I suggest the Department consult confidentially with War and Navy Departments and instruct me accordingly as soon as possible. In this connection I propose to request President for assurances that: [Page 732]
- 1.
- Colombian military and aviation forces will continue adequately to supervise Arco.50
- 2.
- If subsequently other precautionary measures seem desirable to us he will be receptive thereto and in any case permit Pan American Airways to take such steps without expense to Avianca.
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- Sociedad Aerovias-Remales Colombianos.↩