810.74/518: Telegram

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

1652. For Welles and Duggan. Heath’s telephone conversation and my 1633, of October 5, 7 p.m. In tomorrow morning’s directors’ meeting Transradio Chilena will probably decide to refuse to transmit or receive for delivery any messages in secret code destined for or originating in any non-American country. It would continue, however, to accept clear and registered commercial code messages on non-American circuits. This will not prevent Axis Embassies here from transmitting in their codes to Axis Embassies in Buenos Aires for retransmittal to Axis capitals or perhaps arranging for Axis radio authorities to listen in on the Santiago-Buenos Aires radio circuits. This decision would, however, prevent the Swiss, Spanish, Portuguese, Swedish, and British diplomatic representatives from being able to communicate over Transradio in confidential code directly with their capitals but missions of these countries can still continue communicate directly or indirectly in code over All America and West Coast cables via routes crossing Allied censorship lines.

This is as far as the two Chilean directors who, after having been in touch with Barros Jarpa and President Ríos, will go at this meeting. [Page 161] Jory confirmed this and asks to communicate to Radio Corporation of America his conviction that it will be impossible at this time to secure a vote to completely close the Axis circuits.

The directors assert, however, their proposal will accomplish more than merely closing Axis circuits. They also say that this is to be regarded as a first step toward the possible closure of circuits to the transmission of all messages to non-American countries.

The British Commercial Counselor who has handled the matter for his Embassy at first feared that his Government might object to a prohibition on code messages to Britain but after talking with the directors said he was convinced that no obstacles should be placed in the way of the proposed action at this moment, and would advise London. He observed that an exception could later be made in Britain’s favor if desired. If insisted on now the Spanish and other European missions would claim equal treatment and thus provide further loopholes for Axis communications.

The British Embassy does not use Transradio.

Bowers