825.00 Revolutions/152: Telegram

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

129. Saturday Ibañez found it unsafe to remain in his house and went to the quarters of one of the cavalry regiments. The supporters of Dávila interpreted his action as a move to organize an attack and preparations were made to strengthen the defense of the Moneda. Lagos, Minister of War, and Zañartu, Minister of Finance, visited Ibañez and at first threatened to attack with the tanks and then settled down to a more or less friendly talk as a result of which the latter left and is now near Santiago. It is said that the carabineros [Page 459] and the cavalry regiments will not permit his arrest. His friends explain his retirement by saying that he does not wish to press his claims to the point of bloodshed. They insist that all that has happened politically in Chile since July 26, 193124 is illegal and that Ibañez is the constitutional President of Chile entitled to complete his term.

These events indicate that Dávila’s position has been strengthened. He has the determined support of the Infantry under Lagos and of Merino in the Air Forces; and tanks and airplanes in the hands of ambitious men fighting for their own future mean very much under the present unorganized conditions in Chile. In addition he has the support of important political groups who favor him because of the belief that he will carry out his socialist program. This morning Minister of the Interior and the Minister of Finance issued statements denying rumors that they intended resigning because of friendly relationship with Ibañez and declaring their support of Dávila. Dávila is proceeding as if he expects to continue in power indefinitely. He has announced definitely the holding of a constitutional convention to be followed by elections. Moreover, from a very confidential source I have learned that he has already formulated a plan for obtaining money from abroad. It consists of scaling down the State debt owed to foreigners to one-fifth of its value; borrowing $25,000,000 and securing the service of the whole by the supervised income of State monopolies of gasoline, matches, gambling and other undertakings.

Another view is that Dávila’s position is due chiefly to the ineffective organization of the supporters of Ibañez who have in their enthusiasm failed to take into consideration all the factors in the situation, but that civilian opinion, the carabineros and the elements of the armed forces not directly committed to Dávila will ultimately favor the return of Ibañez to power. In any event it is certain that he will remain an important factor in Chilean politics.

Culbertson