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SECRET 39 that an unrestricted aviation policy toward ing the services of an airways expert when a foreign carriers would probably result in many new US mission can be assigned. international flights overflying Chilean terri- tory (en route to Buenos Aires, for example, 4. Airlines. via the west coast of South America), the Gov- a. Chilean Scheduled Airlines. ernment of Chile has followed an international From 1932, when it was organized, until air transport policy designed to assure service early 1949, the Chilean national airline LAN to Chile on the principal airline routes of the area. It has therefore insisted that air car- (Linea Aerea Nacional), enjoyed a monopoly of riers crossing Chile make at least one traffic Chilean-flag scheduled air transportation. In May and June of 1949, however, concessions stop within the country, direct or connecting were granted to two small Chilean airlines to service to Santiago being mandatory. conduct scheduled services supplementing Chile now has bilateral air transport agree- LAN operations. ments with the US, the UK, Argentina, Bolivia, A number of factors have hampered LAN's Brazil, and Peru. efforts to expand and improve its services. In b. International Organizations. 1948, for instance, the company was unable to Chile has experienced considerable difficulty fulfill its new flight schedules when its four in financing delegations to meetings of the In- new Martin 202 aircraft were grounded for ternational Civil Aviation Organization manufacturer's design changes. Overhaul and repair difficulties with these same aircraft (ICAO), of which the country has been a member since early 1947. It was not repre- again interfered with flight schedules in the sented, for example, at the important Novem- summer of 1949. Moreover, lack of adequate ber 1947 ICAO Assembly meeting in Geneva. airfield, air navigation, and meteorological fa- Some high government circles, particularly cilities in the southern part of the country has the military, are seriously considering Chile's handicapped LAN's efforts to provide regular withdrawal from ICAO, allegedly because of service in that region. The company has also the acute shortage of dollar exchange in Chile. been plagued with personnel problems to the The civilian elements concerned with aviation, extent that a full-scale investigation of the however, which are more actively promoting company's operations was recently ordered, civil air activities in the country, are strongly with a view to eventual reorganization. opposed to withdrawal of Chile's international Government subsidization of LAN opera- representation. Outstanding among this tions has been increased considerably since 1940. Continued heavy subsidies, however, group, as well as in his contribution to the progress of civil aviation in Chile, is Edward are required to cover the company's operating deficits. Some economies have been effected Hamilton, Secretary-General of the Chilean Civil Aeronautics Board and Chief of the Divi- through the joint maintenance by LAN and sion of Law and Air Transport in the Direc- PANAGRA of a meteorological service at San- torate General of Aeronautics. He has been tiago which supplies all aircraft with weather data. a leader both in Chilean aviation and in its representation abroad, and has consistently (1) LAN (Linea Aerea Nacional). supported the liberal aviation principles advo- Routes: cated throughout the world by the US. Domestic: The main domestic route oper- LAN is a member of the International Air ated by LAN stretches the full length of Chile Transport Association (IATA). from Arica in the north, on the Peruvian border, to Punta Arenas in the extreme south c. US Technical Assistance. of Chile, on the Straits of Magellan. A US Civil Aviation Technical Assistance International: LAN operates one interna- Mission, set up in Chile in 1948, submitted tional route, a non-stop service from Santiago numerous recommendations to the Chilean to Buenos Aires, using its Martin 202's. LAN Government for improvement of the country's has long planned to inaugurate service to civil aviation facilities. Chile is now request- Lima, Peru, and to La Paz, Bolivia, on the basis E e R

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    "ocrText": "SECRET\n39\nthat an unrestricted aviation policy toward\ning the services of an airways expert when a\nforeign carriers would probably result in many\nnew US mission can be assigned.\ninternational flights overflying Chilean terri-\ntory (en route to Buenos Aires, for example,\n4. Airlines.\nvia the west coast of South America), the Gov-\na. Chilean Scheduled Airlines.\nernment of Chile has followed an international\nFrom 1932, when it was organized, until\nair transport policy designed to assure service\nearly 1949, the Chilean national airline LAN\nto Chile on the principal airline routes of the\narea. It has therefore insisted that air car-\n(Linea Aerea Nacional), enjoyed a monopoly of\nriers crossing Chile make at least one traffic\nChilean-flag scheduled air transportation. In\nMay and June of 1949, however, concessions\nstop within the country, direct or connecting\nwere granted to two small Chilean airlines to\nservice to Santiago being mandatory.\nconduct scheduled services supplementing\nChile now has bilateral air transport agree-\nLAN operations.\nments with the US, the UK, Argentina, Bolivia,\nA number of factors have hampered LAN's\nBrazil, and Peru.\nefforts to expand and improve its services. In\nb. International Organizations.\n1948, for instance, the company was unable to\nChile has experienced considerable difficulty\nfulfill its new flight schedules when its four\nin financing delegations to meetings of the In-\nnew Martin 202 aircraft were grounded for\nternational Civil Aviation Organization\nmanufacturer's design changes. Overhaul\nand repair difficulties with these same aircraft\n(ICAO), of which the country has been a\nmember since early 1947. It was not repre-\nagain interfered with flight schedules in the\nsented, for example, at the important Novem-\nsummer of 1949. Moreover, lack of adequate\nber 1947 ICAO Assembly meeting in Geneva.\nairfield, air navigation, and meteorological fa-\nSome high government circles, particularly\ncilities in the southern part of the country has\nthe military, are seriously considering Chile's\nhandicapped LAN's efforts to provide regular\nwithdrawal from ICAO, allegedly because of\nservice in that region. The company has also\nthe acute shortage of dollar exchange in Chile.\nbeen plagued with personnel problems to the\nThe civilian elements concerned with aviation,\nextent that a full-scale investigation of the\nhowever, which are more actively promoting\ncompany's operations was recently ordered,\ncivil air activities in the country, are strongly\nwith a view to eventual reorganization.\nopposed to withdrawal of Chile's international\nGovernment subsidization of LAN opera-\nrepresentation. Outstanding among this\ntions has been increased considerably since\n1940. Continued heavy subsidies, however,\ngroup, as well as in his contribution to the\nprogress of civil aviation in Chile, is Edward\nare required to cover the company's operating\ndeficits. Some economies have been effected\nHamilton, Secretary-General of the Chilean\nCivil Aeronautics Board and Chief of the Divi-\nthrough the joint maintenance by LAN and\nsion of Law and Air Transport in the Direc-\nPANAGRA of a meteorological service at San-\ntorate General of Aeronautics. He has been\ntiago which supplies all aircraft with weather\ndata.\na leader both in Chilean aviation and in its\nrepresentation abroad, and has consistently\n(1) LAN (Linea Aerea Nacional).\nsupported the liberal aviation principles advo-\nRoutes:\ncated throughout the world by the US.\nDomestic: The main domestic route oper-\nLAN is a member of the International Air\nated by LAN stretches the full length of Chile\nTransport Association (IATA).\nfrom Arica in the north, on the Peruvian\nborder, to Punta Arenas in the extreme south\nc. US Technical Assistance.\nof Chile, on the Straits of Magellan.\nA US Civil Aviation Technical Assistance\nInternational: LAN operates one interna-\nMission, set up in Chile in 1948, submitted\ntional route, a non-stop service from Santiago\nnumerous recommendations to the Chilean\nto Buenos Aires, using its Martin 202's. LAN\nGovernment for improvement of the country's\nhas long planned to inaugurate service to\ncivil aviation facilities. Chile is now request-\nLima, Peru, and to La Paz, Bolivia, on the basis\nE\ne\nR"
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