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810.20 Defense/2740: Telegram
  The Ambassador in Paraguay (Frost) to the Secretary of State

                                               As-uNCIoN, undated.
                              [Received May 27, 1942-10: 08 p. m.]
  230. My No. 225, May 22, 9 p. m. Minister of War today stated
that authorization air field applies to only Asuncion, as Panair has
submitted no petition respecting Concepcion. He requests immediate
formulation of request for Concepcion, taking into account that the
field there is and must remain a military field.
  I have the honor to request that Panair be at once directed to in-
struct its representative at Asuncion immediately to submit proposal
for Concepcilon. Engineer Somers should be placed in position to
operate simultaneously as to both fields. I should appreciate tele-
graphic instruction as to whether the Department takes such action.
  Military Attache has prepared following suggestions regarding
Concepcion field which have my full endorsement.
  &quot;(1) Panair to [apparent omission] field, make any necessary
installations.
  (2) Panair to pay for additional land, but land will be obtained
by Government condemnation proceedings and Government will retain
ownership and title. (If Panair feels price is too high, it may with-
draw from the whole deal).
  (3) In return for above, Panair be granted free use of field for
20 years. At end of period the whole passes to the Government and
Panair gets first refusal to rent.
  (4) Phraseology quoted in Department's telegram 123, April 28,
9 p. m. paragraph [1] may be added in appropriate places: (a) Panair
maintain field's landing facilities for public and military use. (b)
In return Panair will have right control all civilian use of the field,
under supervision of the military commander. Planes of Paraguayan
registry will have free use of landing facilities, others will pay such
fee as mav be determined by Panair in agreement with military.
  The above arrangements are suggested to meet the presumptive view
of Paraguay that: (a) Field remain primarily military. (b) Para-
guay, looking to national air lines, have some say in control of civilian
traffic. (c) Many Paraguayans resent the fact that a foreign concern
can issue orders to Paraguayans.
  Others are suggested to protect Panair to the extent of: (a) If
Panair maintains field, it should have control necessary to carry out
effective maintenance. No control, no responsibility.&quot;

                                                           FROST


454238  63-42


PARAGUAY


647


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