822.796/291: Telegram

The Minister in Ecuador ( Long ) to the Secretary of State

5. Reference my despatch No. 1488, December 27.36 This morning’s press published Sedta37 advisement offering to carry all mail by air at ordinary postage rates.

It has been ascertained that a contract was signed this morning valid for 5 years under which Sedta agrees to carry up to 250 kilos of mail per trip at 10 sucres a kilo. I am informed that the contract can be canceled by the Government upon 8 days notice and it is understood that the Government will receive any proposals Panagra38 may have to make.

As Vidal39 is not here I suggest that the Department consult Panagra’s New York office regarding what countermove it is prepared to make. No hint of prospective signature of contract was received.

  1. Not printed.
  2. Sociedad Ecuatoriana de Transportes Aéreos, German-controlled commercial air carrier.
  3. Pan American-Grace Airways.
  4. Gustavo Vidal, vice president of Panagra.