740.00111 A.R./492
The Chargé in Chile ( Frost ) to the Secretary of State
[Received October 10.]
Sir: I have the honor to report that the Acting Chief of the political section of the Foreign Office, Señor Enrique Gajardo, informed me this morning that Chile’s only hesitation respecting the three hundred [Page 38] mile safety zone agreed upon by the Pan American Conference had arisen from the opinion of the Chilean Navy that the latter would not be able effectively to patrol the extensive ocean areas which the zone establishes. The Navy last week expressed the view that a fifty mile zone would be much more practicable. As assurances were received by the Chilean delegation at Panama, however, from Under Secretary Welles, that each country would be expected only to effect such patrol measures as its naval resources permit, the Chilean Government was glad to accept the proposal. He indicated that the Declaration of Panama regarding the safety zone is to be communicated to all the belligerent Governments by the president of the Conference; and expressed the opinion that Germany would be fully as ready to accept it as would England and France.
Much interest has been aroused at Santiago by the possibility that the German merchant ships which have sought refuge in Chilean harbors might navigate freely within the safety zone. This would be to the advantage of Germany, but would also be beneficial to Chilean commerce. The decision of Panama that the merchant ships of belligerents in Latin American ports might be transferred to Latin American ownership if the sales are bona fide is of some relevance; but it is doubtful whether Chile possesses sufficient German exchange or funds to put through genuine purchases of the six vessels now in her ports. Some of the leading American mineral enterprises in Chile would be pleased to see such a transfer take place, or to learn that the regulations in connection with the establishment of the safety zone will permit German vessels to operate without danger throughout the western hemisphere. Señor Gajardo stated that his Government has not as yet given this question protracted or thorough consideration.
It may be mentioned that Señor Gajardo drafted the instructions to the Chilean delegation to Panama, with the approval of the Foreign Minister, which is said at all times to have been readily forthcoming. He states that no difficulties of any consequence arose, from a Chilean standpoint, during the Conference. The Chilean delegation under instructions from its Government, he feels, was able to cooperate cordially and without differences of opinion in the deliberations of the Panama Conference; which he considers to have been eminently successful. From such cursory attention as the Embassy has found time to devote to the Santiago press during the past week it would appear that the public reaction to the labors of the Conference has not been very active; but that it has been favorable, except that the Nacista-Socialist El Trabajo attacks the results as representing one more advance for imperialism.
Respectfully yours,