829.7961 Dept. of Commerce Flight/23
The Ambassador in Chile (Collier) to the Secretary of State
[Received May 23.]
Sir: I have the honor to refer to the Department’s cablegram No. 28 of April 16, 4 p.m., answering my cablegram No. 50 of April 11, 2 p.m., in which I referred to certain impressions which the local representatives of the Curtiss Airplane Company and certain local agents of American munition firms had as to causes operating against their securing contracts with the Government of Chile, and as to the source of certain insinuations which they felt underlay these causes. The Department’s reply is so phrased that I fear that it was of the opinion that I had discussed the matter with the Chilean authorities. This had never been done by me and the only participation that I had in the conversations with these American representatives and agents as [was?] to listen to what they had to say. I did not even tell them that I was about to report to the Department what they had told me in order to give it an opportunity to give me any necessary instructions.
I have made most vigorous efforts with both the Minister of Foreign Affairs and the President of the Republic to get them to give these American firms a part of the contracts for airplanes which are about to be let. Always these officials have admitted the superiority of the [Page 815] Curtiss planes, but have alleged that price stood in the way of letting the contract to them. The Curtiss Company denies that there is an appreciable difference in the price; at least, that the difference bears any proper relation to the great superiority which they have demonstrated that their planes possess.
In a recent conversation with President Ibáñez, he surprised me by telling me that he did not favor the purchase of military planes, but wished to get very many cheap planes which could be put into commercial services that could be inaugurated and that could afford an opportunity for the Chilean military aviators to practice. The President was most explicit in this statement, but what he said is so different from repeated declarations and undoubted intentions of the military authorities, that the only reconciliation of the two statements is that the President would prefer the purchase of cheap civilian planes and the training of military aviators in them, but that his military advisers wish military planes. It is probable that the President will defer to the judgment of the latter and even if some cheap commercial planes are bought, a large number of military planes will undoubtedly be acquired. I am told by the Curtiss people that they have fairly reliable information that the Army desires to purchase not merely 18 military planes as has been announced, but 36.
While in my talks, with these officials, I have not in any way mentioned the probable attitude of the United States with regard to the permission or the prohibition to fulfill contracts for airplanes and munitions in case war should break out, the President in his recent talk with me did say that a certain element in the Army entertained this view, and he even intimated that the idea had been inspired by competitors.
With specific reference to munitions, the President said that the Colt Arms Company, through their agent, was trying to make sales to Chile and that he (the President) personally always had favored purchasing from American manufacturers but the majority of the Army officers charged with the study and purchase of this equipment, favored making the purchases in Europe.
I have [etc.]