FOREIGN RELATIONS, 1942, VOLUME VI



  The petitioning company in the 4 years of its operation in the
country has sufficiently demonstrated its capacity, skill and qualifica-
tions to afford aerial services and meet the heavy expenses which the
necessary installations require."
                                                          FROST

810.20 Defense/2757: Telegram
  The Secretary of State to the Ambassador in Paraguay (Frost)

                              WASHINGTON, June 5, 1942-3 p. m.
  170. Your 234, May 29, noon. The Department does not consider
acceptable the phraseology proposed by the Paraguayan Government
in the second paragraph of your telegram under reference. There is
no assurance that when the "international emergency" disappears
it
will be consistent with the safety and security of the Hemisphere to
facilitate aviation activities in the Hemisphere by non-American
companies or citizens. The Department strongly urges that the form-
ula contained in the Department's 123, April 23 [28], 9 p. m., be used
without modification.
  Your 230, May 27; 233, May 28; and 236, May 29, 1 p. m. This
Government considers it important that the decree contain no lan-
guage that would operate to give Pan American exclusive rights of a
nature which would conflict with our agreement with Pan American
as described in the Department's 123, April 23 [28], 1942 and believes
that this result will be best accomplished by a specific provision in the
decree that the field may be used by United States publicly owned or
duly registered privately owned aircraft and aircraft operated for
the United States Government under contract and by any other aircraft
authorized by the United States Government and Paraguayan Govern-
ment. Such reasonable landing fees or charges as Paraguayan laws
or regulations may require will be paid by all aircraft using the field
except for United States and Paraguayan Government owned aircraft
which would of course use the field without payment of fees or charges.
                                                           HULL

810.20 Defense/2804: Telegram
  The Ambassador in Paraguay (Frost) to the Secretary of State

                               ASUNCION, June 11, 1942-10 p. m.
                                  [Received June 12-12: 15 p. m.]
  258. Department's no. 170, June 5, 3 p. m. The Department's atti-
tude was discussed by me with the Foreign Minister on June 8 and 10
and by him at subsequent Cabinet meetings.
  I also conversed extensively with Finance Minister. Tonight I
have received formal memorandum to the following purport. The
phraseology discussed in Department's first paragraph is too absolute



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