Messersmith, G.S., Mexico City. Despatch No. 25,694 to Secretary of State [James F. Byrnes], Washington., 1945 August 04

Enclosure: No. 1721. Reports on dispute between Braniff Airways and Compania Mexicana de Aviación over use of airports; CMA a subsidiary of Pan American and considers airports its own property; knows U.S. Government supplied funds for building and expanding facilities; would like to know how much equity Pan American has in airports; Pan American appears to be trying to establish monopoly; there is room for further air service in Mexico, and competition is healthy; more at issue than dispute between CMA and Braniff; situation could affect U.S.-Mexican relations; talked with heads of both companies and with Minister of Communications, and as temporary expedient Braniff to be allowed use of airports on payment of reasonable fee, but no fundamental issue settled; suggests Department set up Committee composed of representatives of State, Commerce, War, and CAB to consider problem.