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22 SECRET concluded with the US. (See attached chart a single state entity known as Aerolineas Ar- on Latin American bilateral air agreements.) gentinas. FAMA continues to be the instru- ment for transoceanic and major international b. International Organizations. operations, while domestic and regional in- Argentina was the only Latin American ternational services are conducted under the country not invited to the 1944 Chicago Con- name of Aeroposta. ALFA and ZONDA have ference at which the Convention establishing ceased to exist. Until the necessary changes ICAO was adopted. Since it adhered to the in power plants, panel instrumentation, and Convention on 4 June 1946, however, Argen- radio equipment can be effected to make the tina has participated actively in ICAO. Ar- equipment of the three former airlines inter- gentina's international airline, FAMA, is an changeable, operations will continue very active member of the International Air Trans- much as in the past although functioning un- port Association (IATA). der a single administration and management. c. US Technical Assistance. The military air transport line, LADE, has been maintained for pioneering new routes, for Because of its Axis-oriented policy during relieving the load on internal routes at peak World War II, Argentina did not benefit from traffic periods, and for operation of "national the US-sponsored Inter-American aviation interest" services of little commercial interest training and technical assistance programs. to the regular airlines. Moreover, it has not taken advantage of the Dollar exchange difficulties have seriously opportunity to request US air or technical hampered Argentine efforts to acquire and missions during the postwar period. maintain new US equipment. Utilization of 4. Airlines. FAMA's DC-6 aircraft has been severely re- stricted by lack of spare parts. An Argentine a. Argentine Scheduled Airlines. order for five Convair 240 aircraft, moreover, Before 1945, the airlines of Argentina were has been subject to extended negotiations and wholly privately owned. The Argentine Air has not yet been fulfilled because of lack of Policy Law of 1945, however, made govern- dollar exchange. ment participation in the airlines compulsory. (1) Aeroposta (Empresa Aerocomercial del Under this and subsequent decrees, three do- Estado Aeroposta) mestic carriers and one international airline Routes: Aeroposta serves the southern por- were established. Until nationalization of tion of Argentina, below an arbitrary line ex- these airlines in May 1949, the government tending from Buenos Aires in a generally held 20 percent of the capital of the domestic southwest direction to the Chilean bound- mixed companies, Aeroposta, ALFA, and ary. This area includes the agricultural and ZONDA, and 30 percent of the capital of sheep-raising areas, as well as the Argentine FAMA, the international "chosen instru- lake region. ment." The Dodero shipping and trading in- terests held a large part of the private stock of Equipment: these companies. 6 DC-3 2 C-47 Nationalization of the mixed companies, in- 5 JU-52/3 m volving sale of all private shares to the gov- ernment was decreed in May 1949, ostensibly Ownership: Government. Formerly a mixed because the mixed-company form of organiza- company, re-organized in 1947 from an earlier tion was uneconomic and resulted in severe privately-owned Aeroposta. financial losses which the state had to assume. (2) ALFA (Empresa Aerocomercial del Es- In order further to reduce administrative tado ALFA). costs and improve services, the Argentine Routes: ALFA serves the northeastern part Government in November 1949 initiated an of Argentina, with Buenos Aires as the south- extensive reorganization of the nationalized ern terminus. International routes are oper- airlines. All four carriers were merged into ated to Asuncion and Montevideo. <SECRET

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    "ocrText": "22\nSECRET\nconcluded with the US. (See attached chart\na single state entity known as Aerolineas Ar-\non Latin American bilateral air agreements.)\ngentinas. FAMA continues to be the instru-\nment for transoceanic and major international\nb. International Organizations.\noperations, while domestic and regional in-\nArgentina was the only Latin American\nternational services are conducted under the\ncountry not invited to the 1944 Chicago Con-\nname of Aeroposta. ALFA and ZONDA have\nference at which the Convention establishing\nceased to exist. Until the necessary changes\nICAO was adopted. Since it adhered to the\nin power plants, panel instrumentation, and\nConvention on 4 June 1946, however, Argen-\nradio equipment can be effected to make the\ntina has participated actively in ICAO. Ar-\nequipment of the three former airlines inter-\ngentina's international airline, FAMA, is an\nchangeable, operations will continue very\nactive member of the International Air Trans-\nmuch as in the past although functioning un-\nport Association (IATA).\nder a single administration and management.\nc. US Technical Assistance.\nThe military air transport line, LADE, has\nbeen maintained for pioneering new routes, for\nBecause of its Axis-oriented policy during\nrelieving the load on internal routes at peak\nWorld War II, Argentina did not benefit from\ntraffic periods, and for operation of \"national\nthe US-sponsored Inter-American aviation\ninterest\" services of little commercial interest\ntraining and technical assistance programs.\nto the regular airlines.\nMoreover, it has not taken advantage of the\nDollar exchange difficulties have seriously\nopportunity to request US air or technical\nhampered Argentine efforts to acquire and\nmissions during the postwar period.\nmaintain new US equipment. Utilization of\n4. Airlines.\nFAMA's DC-6 aircraft has been severely re-\nstricted by lack of spare parts. An Argentine\na. Argentine Scheduled Airlines.\norder for five Convair 240 aircraft, moreover,\nBefore 1945, the airlines of Argentina were\nhas been subject to extended negotiations and\nwholly privately owned. The Argentine Air\nhas not yet been fulfilled because of lack of\nPolicy Law of 1945, however, made govern-\ndollar exchange.\nment participation in the airlines compulsory.\n(1) Aeroposta (Empresa Aerocomercial del\nUnder this and subsequent decrees, three do-\nEstado Aeroposta)\nmestic carriers and one international airline\nRoutes: Aeroposta serves the southern por-\nwere established. Until nationalization of\ntion of Argentina, below an arbitrary line ex-\nthese airlines in May 1949, the government\ntending from Buenos Aires in a generally\nheld 20 percent of the capital of the domestic\nsouthwest direction to the Chilean bound-\nmixed companies, Aeroposta, ALFA, and\nary. This area includes the agricultural and\nZONDA, and 30 percent of the capital of\nsheep-raising areas, as well as the Argentine\nFAMA, the international \"chosen instru-\nlake region.\nment.\" The Dodero shipping and trading in-\nterests held a large part of the private stock of\nEquipment:\nthese companies.\n6 DC-3\n2 C-47\nNationalization of the mixed companies, in-\n5 JU-52/3 m\nvolving sale of all private shares to the gov-\nernment was decreed in May 1949, ostensibly\nOwnership: Government. Formerly a mixed\nbecause the mixed-company form of organiza-\ncompany, re-organized in 1947 from an earlier\ntion was uneconomic and resulted in severe\nprivately-owned Aeroposta.\nfinancial losses which the state had to assume.\n(2) ALFA (Empresa Aerocomercial del Es-\nIn order further to reduce administrative\ntado ALFA).\ncosts and improve services, the Argentine\nRoutes: ALFA serves the northeastern part\nGovernment in November 1949 initiated an\nof Argentina, with Buenos Aires as the south-\nextensive reorganization of the nationalized\nern terminus. International routes are oper-\nairlines. All four carriers were merged into\nated to Asuncion and Montevideo.\n<SECRET"
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