814.796/10–2745: Telegram

The Secretary of State to the Ambassador in Guatemala (Kyle)

556. Reurtel 631 Oct 27. Settlement for Aerovías proffered by Guatemalan Government is not result of negotiations with stockholders nor is it so far clear on what values offer is based. Dept is happy to have plainly established principle of compensation but must protect rights American citizens to compensation which is just. Latter not yet clear. Consequently, Dept still unwilling release airplanes and equipment to Aviateca.

Upon receipt additional information requested Depts A–693 Oct 1518 every effort will be made to reach prompt decision as to adequacy of proposed compensation.19

  1. Not printed
  2. On December 18, Ambassador Kyle met in Washington with Guatemalan Ambassador to the United States Garcia Granados, Guatemalan Counselor of Embassy López-Herrarte, Chief of the Division of Caribbean and Central American Affairs W. P. Cochran, Jr., and Miss Anna O’Neill of the Legal Division. Ambassador Kyle opened the meeting, which had been called at his request, by stating that he felt that the Denby case was the principal obstacle to his accomplishing his mission and furthering good relations with Guatemala. (414.11–Denby, Alfred/12–1845) Representations by the Department in protection of the owners of Aerovías continued into 1946.