862.20226/983

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

No. 7932

Sir: With reference to my strictly confidential despatch No. 6911 of July 2, 1943,64 entitled, “The Condition of Nazi Organizations and the Morale of the Germans in Chile”, I have the honor to enclose a copy of the Naval Attaché’s report of October 7, 1943,64 “Axis Activities in Chile Since the Breaking of Diplomatic Relations”.

This report is concerned principally with the steps that have not so far been taken by the Chilean Government to implement its rupture of relations with the Axis powers. As remarked by the Naval Attaché, the report does not imply that Chile is an exception in this respect amongst the South American countries.

I wish to make several comments on the report. It is quite probable that shipping intelligence reports and other information in the interest of the enemy are reaching Axis intelligence but, as already reported to the Department, it would be practically impossible to stop the sending of such messages to Argentina owing to the long frontier between Chile and that country, to the scarcity of Chilean frontier guards and police, and to the various and devious methods at the command of a clever enemy in sending such reports across the mountains. It is not correct that all the “German social clubs are still open and functioning”, the German Club in Santiago having been officially closed by the Chilean Government and the German Club in Valdivia being in a partial state of dissolution at the present time.

It is a fact that the German schools are still open and functioning normally, but in my opinion it would not be desirable for the Chilean Government to take action against these schools for the reason that this would give the Government an excuse to take similar action, on the grounds of nationalism, against the American and British schools in Chile, which are doing good work in building up a feeling of friendship for the United States and Great Britain, since most of the students enrolled are Chileans and since the heads of these schools are patriotic and conscientious persons. Particularly noteworthy in this respect are the Grange School for boys (English) and the Santiago College for girls (American).

With reference to the last paragraph of the report, this Embassy was informed by the British Embassy several days ago that the Chilean Government had at the last moment decided not to sell the drydock at Valparaiso to the British Government.

Respectfully yours,

Claude G. Bowers
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