811.51/5344: Telegram

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

2082. Department’s telegram number 1442, November 25, 1942, 7 p.m.9 and my despatch number 4958, November 16, 1942. Subsecretary of Hacienda advises that decree, translation of which was enclosed in above despatch, will be published early next week probably on Monday in the Diario Oficial with the following change: 1. Article II is made applicable to all persons possessing American currency in Chile and 2, article III last paragraph now requires [Page 140] Consejo Nacional de Comercio Exterior to regulate both purchases and sales of American currency in amounts of $50.

Subsecretary stated Chilean Government will issue directives to customs authorities to enforce law but no other steps other than those specifically mentioned in law will be taken for the present. Subsecretary says it appears impractical to ascertain information as to currency held in safety deposit boxes or otherwise hoarded and that there could be no censorship of mails until Chile adopted censorship laws.

Subsecretary suggests that United States Government announce through Embassy that dollar currency hereafter coming from Chile will be of no value unless turned over to Banco Central de Chile within the 15-day period specified in the decree. Unless instructed to the contrary, upon publication of decree the Embassy will issue a statement to the press embodying the points contained in the second and third sentences of section C of the Department’s telegram number 1149 of September 10 [30] 10 p.m. which points have already been transmitted to the Foreign Office in my note number 1461, October 21, a copy of which was handed to the Secretary of the Central Bank late in October. Embassy deems such publicity essential on day following publication of decree.

Embassy has contacted representatives of Consejo and called their attention to article III of decree and they agreed to consult Embassy before drafting regulations pursuant to said article.

  1. Not printed.