825.6363/258f: Telegram

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

1157. Embassy’s 1477 of September 12 and 1530 of September 22, and Department’s 1122 of September 25.69 Arrangements have been made to reschedule oil supplies to Chile on the basis that the reduction from 66 percent to 40 percent will not become effective until October 1. According to current reports from pool committee which are confirmed by your 1477 Chile will on this basis start October with sufficient gasoline stocks to meet her civilian requirements on a 40 percent basis for two months which is a higher reserve inventory than the pool even attempts to maintain elsewhere.

For obvious reasons it is not desirable to give names, positions and services of any tankers, and all Government agencies are making efforts [Page 115] to avoid broadcasting such information, but local committee will have sufficient information currently to enable Chilean authorities to plan regulatory measures.

You should tell the Chilean authorities that the announcement of the 40 percent supply program was not intended to be regarded as a decision on the part of this Government but instead as the disclosure by this Government of a factual situation which the Chilean Government would do well to prepare to meet. The fact that Chile disregarded this advice two months ago has now required that this Government deprive war important services of oil and send tankers to Chile instead. This course cannot be continued. On the other hand you should assure the Chilean Government that whenever improved situation or special circumstances make it possible additional supplies will be put in to enable the reserve inventory to be built up. Department wishes you to know that despite statements that have been made it has as yet seen no reason for believing that the burden of reduced oil supplies in Chile is as serious as in a number of other republics which do not have either substitute fuels or war industries which receive full supply.

  1. Telegrams No. 1530 and No. 1122 not printed.