The Secretary of State to the Ambassador in Chile ( Shea )
Your November 2, 5 p. m., appears to indicate that the proposed transfer of submarines will result in the release to the British Government of the submarines now being built in Great Britain for Chile. This would amount to the same thing as allowing Great Britain to obtain the same number of submarines from those which have been constructed for her in the United States and which the Fore River Shipbuilding Company have promised the Department would not be delivered during the present war. If the proposed transaction between Chile and Great Britain is to have this result, this Government may be impelled to take the position, in defense of the neutrality of the United States, that these submarines should not be delivered to Chile during the present war.
Please discuss the matter orally with the Foreign Minister in this light, and ascertain, if possible, the true nature of the arrangement between Chile and Great Britain.