File No. 763.72/11099

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

[Telegram]

Embassy’s telegram of August 9, 2 p.m. Much activity in official quarters. La Nacion, controlled by Señor Yanez, in leading editorial yesterday urges action be taken to acquire German ships. Mercurio of this morning has editorial on the same lines. Am of opinion that a direct intimation that it will be necessary very soon to divert the Santa Ana and one or two British vessels from west coast trade would have good effect and might bring quick settlement. For good of local conditions intimation should be made quickly. It will also help the situation if it is intimated that hereafter our ships will be devoted to nitrate trade exclusively and will therefore not come south of Antofagasta.

Shea