825.00 Revolutions/72: Telegram

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

57. I have just talked informally with Carlos Dávila at his home. He said that he had at that moment come from a conference with Puga, President of the Junta, and that the principal subject discussed was their attitude toward foreign interests. He declared that they were in accord that foreign interests are not to be molested. Then, he added by way of qualification, that Cosach might be an exception. I reminded him of the rumors that Grove holds more radical views. He replied that there had been some differences of opinion but that Grove now accepts the policy that their interests are not to suffer from any acts of the government.

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He complained that the article in the New York Times which referred to Soviet Government in Chile was inaccurate and unfair. He said that such point of view was taken from a newspaper here called The Opinion and was not the policy of his government. He said that there would be transformations in the economic life of Chile but that American business will not have any more problems under his government than under Ibañez and Montero. He then said “Please assure my American friends that they have nothing to fear”.

He continued “I suppose you know the situation in the country. We are in for complete control. No movement against us exists in the South or anywhere else. We expect to lift the censorship of the press; we are allowing meetings to be held even when they are against the government. Ibañez was premature in his statements and will not return at the present time”.