810.74/356: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
3116. Your 3721, July 4, 9 p.m.41 Conference took place in Department yesterday at which were present the British Chargé d’Affaires, Sir R. I. Campbell, Sir Campbell Stuart, and representatives of RCA, including Colonel Sarnoff and Mr. Winterbottom, and General Davis, Chairman of the Consortium Trust.
In view of the situation in Argentina and Chile and in consideration of the fact that the consortium stations in those countries continue to carry traffic to and from Axis countries, it had become apparent that nothing short of positive joint action by the British and United States consortium trustees under the direction of their respective governments would result in the ultimate closing of these major circuits to enemy countries.
Therefore, the above meeting was called mainly for the purpose of reaching a mutual agreement upon which a unified course of action could be taken with regard to Argentina and Chile.
It was unanimously agreed at the meeting that RCA would request the Secretary of the Consortium Trust, whose office is in London, immediately to call a meeting in New York of the trustees for the purpose of arriving at a formal agreement under the consortium bylaws which would result in the closing of the consortium circuits in Argentina and Chile to outgoing and incoming messages from enemy countries. In addition, it is contemplated that such a decision [Page 128] by a majority vote of the consortium would be followed by prompt action to eliminate all pro-Axis sympathizers and agents from the directorates or working personnel of the Argentine and Chilean companies.
In connection with the calling in New York of the above-mentioned meeting the Department is keeping in mind the fact that if the German trustees are represented it would appear likely that Swedish proxies will be used or, if the French trustees accept an invitation to attend the meeting, they may be empowered by the Germans to vote in their behalf.
During the conference mentioned in paragraph 1 it was the consensus that even if Germany and France were represented and voted against the action which we contemplate in Argentina and Chile, the deciding vote could be cast by General Davis, the American Chairman. This procedure would be in line with the consortium bylaws which the Department would prefer to adhere to as closely as possible in order to avoid the claim of illegality which it is reasonable to assume will be raised by the Germans in Santiago and Buenos Aires.
In view of the above you are instructed promptly to discuss the matter with the Foreign Office and strongly to urge that the British Government lend every assistance in the carrying out of the above plan. In order to expedite matters it might be well to suggest that the Department has discussed with Sir Ronald Campbell and Sir Campbell Stuart the possibility that Wilshaw and Inverforth42 designate to attend the consortium meeting in New York two persons already in this country, possibly from the Embassy, to act as their alternates. Also, you are authorized to suggest that the British Government promptly transmit to its representatives in Buenos Aires and Santiago confidential advice of the above plan. Please keep the Department currently informed of developments.