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SECREN APPENDIX Q PARAGUAY 1. Government Organization for Civil Avia- (one rail line from Asuncion southeast to the tion. Argentine border). River transportation and Paraguay's limited civil aviation activity is fair-weather roads must be depended on for administered by the Ministry of National De- most transport requirements. Although Par- fense, acting through a Directory of Aerial aguayan legislation grants LATN a monopoly of domestic commercial air service, the gov- Traffic (Direccion de Trafico Aero). The lat- ter agency was recently removed from the ernment also gave tacit approval to the estab- lishment of a limited charter service by US jurisdiction of the Commander of the Air Force, with the result that civilian control over interests during 1948. LATN has protested commercial aviation has been increased. this service, but the government now seems determined to encourage any form of aviation Military and civil aviation functions are now activity. theoretically separated, although there is still considerable overlapping. The effectiveness c. Regulation of Foreign Airlines. of the "Direccion" in developing civil aviation It is Paraguayan policy to encourage inter- in Paraguay is still seriously restricted by its national carriers to serve the country, but the lack of greater autonomy and sufficient re- traffic potential is too low to attract many sources. foreign operators. No US carrier serves Asuncion, the capital, at the present time. 2. Domestic Civil Aviation Policy. Although an application by Braniff Interna- a. Civil Aviation Legislation. tional Airways to serve Asuncion en route to There is very little legislation in Paraguay Buenos Aires is being given priority attention affecting civil aviation. No information is by the "Direccion," it is unlikely that Braniff available on civil air regulations currently in will inaugurate service to Paraguay until Ar- effect. Linea Aerea de Transporte Nacional gentina authorizes extension of the route to (LATN), the national airline, was established Buenos Aires.* Commercial airline travel to by Decree No. 4464 of 12 July 1944. A second Asuncion is now possible only via Argentine or Decree, No. 7151, adopted 6 February 1945, Brazilian airlines. established operating regulations for LATN Cabotage traffic is reserved to Paraguayan and also granted the airline a monopoly on enterprises. domestic air transportation. d. Promotion of Other Aviation Activity. b. Regulation of Paraguayan Airlines. The excellent runway at the Asuncion air- Progress in civil aviation, which is at a very port was built by the US under the wartime primitive level in Paraguay, has been retarded Airport Development Program. Development by political instability, lack of interest, and and improvement of other fields (none of insufficient funds. Implementation and en- which is surfaced) has increased the number forcement of civil air regulations have been of points served by the national air service. lax, and frequent changes of administration Recent aviation policy has encouraged pri- have interrupted the establishment of a con- vate flying and the reorganization of the Aero sistent aviation policy. Club del Paraguay (ACP). Reactivation of Paraguay is a fertile field for the develop- this club, equipped with its own aircraft, and ment of air transport, since it has a limited highway system, and rail service is main- * Braniff inaugurated Lima-La Paz-Asuncion- tained only in the southern part of the country Buenos Aires service during June 1950. SECRET 91

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    "ocrText": "SECREN\nAPPENDIX Q\nPARAGUAY\n1. Government Organization for Civil Avia-\n(one rail line from Asuncion southeast to the\ntion.\nArgentine border). River transportation and\nParaguay's limited civil aviation activity is\nfair-weather roads must be depended on for\nadministered by the Ministry of National De-\nmost transport requirements. Although Par-\nfense, acting through a Directory of Aerial\naguayan legislation grants LATN a monopoly\nof domestic commercial air service, the gov-\nTraffic (Direccion de Trafico Aero). The lat-\nter agency was recently removed from the\nernment also gave tacit approval to the estab-\nlishment of a limited charter service by US\njurisdiction of the Commander of the Air\nForce, with the result that civilian control over\ninterests during 1948. LATN has protested\ncommercial aviation has been increased.\nthis service, but the government now seems\ndetermined to encourage any form of aviation\nMilitary and civil aviation functions are now\nactivity.\ntheoretically separated, although there is still\nconsiderable overlapping. The effectiveness\nc. Regulation of Foreign Airlines.\nof the \"Direccion\" in developing civil aviation\nIt is Paraguayan policy to encourage inter-\nin Paraguay is still seriously restricted by its\nnational carriers to serve the country, but the\nlack of greater autonomy and sufficient re-\ntraffic potential is too low to attract many\nsources.\nforeign operators. No US carrier serves\nAsuncion, the capital, at the present time.\n2.\nDomestic Civil Aviation Policy.\nAlthough an application by Braniff Interna-\na. Civil Aviation Legislation.\ntional Airways to serve Asuncion en route to\nThere is very little legislation in Paraguay\nBuenos Aires is being given priority attention\naffecting civil aviation. No information is\nby the \"Direccion,\" it is unlikely that Braniff\navailable on civil air regulations currently in\nwill inaugurate service to Paraguay until Ar-\neffect. Linea Aerea de Transporte Nacional\ngentina authorizes extension of the route to\n(LATN), the national airline, was established\nBuenos Aires.* Commercial airline travel to\nby Decree No. 4464 of 12 July 1944. A second\nAsuncion is now possible only via Argentine or\nDecree, No. 7151, adopted 6 February 1945,\nBrazilian airlines.\nestablished operating regulations for LATN\nCabotage traffic is reserved to Paraguayan\nand also granted the airline a monopoly on\nenterprises.\ndomestic air transportation.\nd. Promotion of Other Aviation Activity.\nb. Regulation of Paraguayan Airlines.\nThe excellent runway at the Asuncion air-\nProgress in civil aviation, which is at a very\nport was built by the US under the wartime\nprimitive level in Paraguay, has been retarded\nAirport Development Program. Development\nby political instability, lack of interest, and\nand improvement of other fields (none of\ninsufficient funds. Implementation and en-\nwhich is surfaced) has increased the number\nforcement of civil air regulations have been\nof points served by the national air service.\nlax, and frequent changes of administration\nRecent aviation policy has encouraged pri-\nhave interrupted the establishment of a con-\nvate flying and the reorganization of the Aero\nsistent aviation policy.\nClub del Paraguay (ACP). Reactivation of\nParaguay is a fertile field for the develop-\nthis club, equipped with its own aircraft, and\nment of air transport, since it has a limited\nhighway system, and rail service is main-\n* Braniff inaugurated Lima-La Paz-Asuncion-\ntained only in the southern part of the country\nBuenos Aires service during June 1950.\nSECRET\n91"
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