825.24/1351: Telegram

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

1542. Department’s circular telegram of August 31, 4 p.m.5 Embassy has discussed the matter with Under Secretary of Economy and Commerce and Country Agency.6 They are in favor of all simplification possible by American authorities as soon as possible. They express hope that export price controls in United States will continue and that needed strategic materials such as iron, steel, et cetera, will continue to enjoy preferred production and shipping. The Chilean [Page 174] Government will continue its control of imports through exchange control and issuance of import permits now in force.

While the Embassy has spent considerable effort in developing with the Country Agency Plan A to the point where it is working well, the Embassy welcomes simplification of our export trade to the maximum consistent with and conducive to our war effort. Frequent changes of documentation, procedures and supply position tend to upset trade and the market and favor speculation. Special representative OEW7 concurs. Canadian Trade Commissioner received instructions yesterday to consult Chilean authorities along similar lines and has reported to his Government favorable reaction of Chilean authorities.

We are continuing Plan A until further instructed. If new procedure is put into effect and personnel now employed no longer needed here they will be glad to serve elsewhere.

Bowers
  1. Not printed.
  2. The Chilean office responsible for administering import controls.
  3. Leonard H. Price of the Office of Economic Warfare, successor agency to the Board of Economic Warfare.