835.796/282: Telegram
The Chargé in Argentina (Reed) to the Secretary of State
[Received 3:26 p.m.]
1553. Embassy’s 1532, August 7, 6 p.m. Ribeiro Dantas, president of Condor Airline, now visiting Buenos Aires says Argentine Government willing to pay 4 million pesos for Condor shops and [Page 446] installations at Buenos Aires Quilmes airport and that he will accept this offer. Presumably Argentine Army will take over former Condor technical personnel at Quilmes including some Germans recently discharged by Condor. Dantas says Condor had Argentine permit valid until end of the year for service to Buenos Aires, with provision for further study of proposed Argentine-Brazilian mixed company. He thinks latter will not materialize.
Above development will leave Condor with only administrative personnel and small maintenance staff in Argentina. Dantas claims all local personnel now Argentine.
As mentioned Embassy’s 1532, participation of Borges is in effect a sale to the Brazilian Government, probably making it difficult for YPF to refuse to sell in the event Intava not authorized to do so. If Intava is granted permission to supply Borges or Condor, suggest that this be on month to month basis.
There remains question of traffic control. Understanding with Condor as to undesirable aliens and merchandise would be advisable. Embassy would also require copy of passenger lists. Should these points be negotiated here for Argentina or in Rio de Janeiro for company as a whole?
An early reply for Intava regarding gasoline would be appreciated.
Repeated to Rio de Janeiro.