800.8820/922: Telegram

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

27. Owing to the liberal licensing policy of the Board of Economic Warfare with respect to exports to the other republics there are now produced very substantial quantities of materials which are awaiting shipment. With regard to certain countries, including that to which you are accredited, the backlog of goods now licensed and produced exceeds the available shipping space for many months.

[Page 160]

The composition of this backlog and the tonnages involved are summarized as follows:

Iron and Steel 6,519 tons
Other paper 392
Caustic and soda ash 1,174
Wood pulp 2,588
Petroleum products 1,084
Fire brick and clay 1,101
Naval stores 671
Machinery 1,513
Lithopone 42
Paints and paint products 212
Other chemicals 2,528
Glass 1,175
Lumber 81
Lead 134
Carbon black 5
Cement and plaster 852
Foodstuffs 66
Miscellaneous 4,559
Yarns and cloth 436
Explosives 46
Agricultural machinery 95
Projects 135
Cargo on West Coast—Breakdown not available 14,317
Total 39,725 tons

In addition there are 2,687 tons of newsprint and 2,380 tons of coal and coke licensed. These commodities will be shipped in accordance with existing arrangements.

You will appreciate that in addition to the known backlog a large volume of goods will come forward as result of outstanding licenses plus additional licenses contemplated hereinafter and that it will take many months to liquidate these combined cargoes at the rate of 10,000 tons (target tonnage) per month.

While new ship construction is currently very satisfactory this will not relieve commercial cargo routes inasmuch as the tonnage requirements of the military forces must receive preference.

[The remainder of this instruction, which concerns the selective commodity licensing program of the Board of Economic Warfare, is the same, mutatis mutandis, as the last nine paragraphs of telegram No. 39, January 9, 9 p.m., to the Ambassador in Bolivia, printed on page 132 (see portion beginning “In order to alleviate”, page 133).]

Hull