811.20 Defense (M) Chile/307

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

No. 4857

Sir: I have the honor to refer to Department’s mimeographed instruction of October 9 [19] (File No. 811.20 Defense (M)/9746A)5 expressing the desire that there be reported promptly by telegraph for the information of the United States Commercial Company data concerning raw materials being purchased or believed susceptible of purchase by enemy countries, as well as shipments going to neutral and non-belligerent countries believed ultimately destined to enemy countries.

So far as pre-emptive buying is concerned, the principal group of products which would be of interest to enemy countries, namely metals and minerals, appears already to be adequately covered by existing contracts, notably the contract concluded by the Metals Reserve Company. As for other products, there are few except wool, hemp and limited quantities of hides and skins which Chile is in position to export, and the Embassy has no reason to believe that purchases of these commodities have been made by enemy agents or that shipments have been reaching enemy countries, either directly or indirectly.

The only possible exception to what has just been said is in the case of copper which, as the Department knows, has been going in considerable quantities to Argentina and in some instances is known to have reached firms in that country which are included in the Proclaimed List. Whether or not any of this copper has subsequently been reexported from Argentina to destinations from which it might eventually reach the enemy is, of course, a matter for the Buenos Aires Embassy to determine.

This Embassy will continue to be on the alert with respect to the activity of enemy agents and of cloaks for the latter and will investigate carefully all transactions which appear to be in any way questionable.

So far as shipments from Chile to countries outside the Western Hemisphere are concerned, such information as is obtainable locally [Page 76] is being reported regularly and in the Embassy airgram No. A–314, October 31, 2 p.m.,6 it was pointed out that the British Embassy transmits immediately to London full information regarding all shipments from Chile to Europe in connection with the navicerts system and that data regarding such shipments not only from Chile but from all other Latin American countries should be readily available at the British Ministry of Economic Warfare.

Respectfully yours,

Claude G. Bowers
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