File No. 763.72111/4244

The Ambassador in Chile (Shea) to the Secretary of State

[Telegram]

Minister for Foreign Affairs makes following reply to my oral representations regarding your cipher telegram November 10, 2 p. m.

The proposal to transfer to the Government of Chile the submarines that are being constructed in the United States of America for the Government of Great Britain is not morally an agreement by which Chile promises to transfer to the Government of His Britannic Majesty the only ship that [is] under construction for Chile in England.

The British Government requisitioned the first of our two dreadnoughts which was almost completed at the outbreak of the European war. It has declared its intention not to do likewise with the second, the construction of which, however, is practically at standstill.

The transfer of the five submarines is a compensation offered by the British Government and accepted by us for the serious damages caused by the delay in the delivery of our ships.

Under these conditions the change of flag of the five submarines can nowise affect the neutrality of the United States.

Shea