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June 23rd, 1955

Mr. Leo J. Dorney
Calle 4 Poniente 22
San Pedro de los Pinos
Ciudad

Dear Mr. Dorney:

Adverting to our conversation on the subject, I advise that we are somewhat reluctant to enter into an agreement such as that proposed by Mr. Steward after his visit to Mexico. 

You will recall that Mexicana de Aviacion through the undersigned stated positively that this company cannot contemplate investing in an inventory required by a commercial engine overhaul shop. I am authorized to advise that this company is vitally interested in achieving the economy offered by the man-hour labor differential and by savings in freight outlay. If a properly authorized and properly organized overhaul service is installed in the vicinity of Mexico City, we definitely are potential clients. We presently ship for overhaul slightly more than two hundred engines per year, and we feel that approximately the same amount of work would be obtained from other operators in this country. Moreover, we feel that qualified overhaul service in the Mexico City area would get all the business from the North Coast of South America as well as Panama and the five Central American countries.
We are not afraid of the manpower aspect nor of the equipment and the tooling problem, but we definitely cannot invest all our capital in inventory items. 
Wishing you success in your project, and with warm greetings, I remain,
Very truly yours,
ERS
E. R. Silliman

ERS/ova